MIRA INFORM REPORT

Report No. :	507260
Report Date :	08.05.2018

IDENTIFICATION DETAILS

Name :	LEALEA ENTERPRISE CO., LTD.
Registered Office :	11F. No.162, Sung Chiang Rd., Taipei, Taiwan, R.O.C.
Country :	Taiwan
Financials (as on) :	31.12.2017
Date of Incorporation :	15.01.1979
Com. Reg. No.:	07663290
Legal Form :	Joint Stock Company
Line of Business :	Manufacturing and Sale of Polyester Yarn, etc.
No. of Employees :	About 1,170 About 3,500 (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 :	Good
Payment Behaviour :	Regular
Litigation :	Exist

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

Contact Points

Company Name:	LEALEA ENTERPRISE CO., LTD.
Supplied Name:	LEALEA ENTERPRISE CO., LTD
Trading Address:	11F. No.162, Sung Chiang Rd., Taipei, Taiwan, R.O.C.
Supplied Address:	11F, NO.162, SUNG CHIANG RD., TAIPEI TAIWAN, R.O.C
Telephone Number:	+886-2-2100-1188
Fax Number:	+886-2-2100-2688
E-mail:	ll_sales@lealea.com.tw
Website:	www.lealea.com.tw

Notes: The exact name and address are as above.

Company Identification Details

Registered Name:	LEALEA ENTERPRISE CO., LTD.
Registered Address:	11F. No.162, Sung Chiang Rd., Taipei, Taiwan, R.O.C.
Date of Foundation:	1979-01-15
Registration Number:	07663290
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 12,000,000,000 (USD 408,000,000) (As of 2018.5, 1 NTD = 0.034 USD)
Paid-up Capital:	NTD 9,573,029,420 (USD 325,483,000.28)
Legal Representatives:	Shaoyi Guo
Legal Form:	Joint Stock Company
Principal Activities:	Manufacturing and sale of polyester yarn, etc.
Staff:	About 1,170 Employees About 3,500 Employees (Group)
Listed at Stock Exchange:	Yes; Stock Code: 1444
Date of Last Annual Return:	2018-01-05

History

Subject was incorporated on 1979-01-15 with registered number 07663290 as Joint Stock Company in Taiwan.

Subject listed on Taiwan Stock Exchange on 1999-08-08.

Corporate Structure

Factories

1
Name:	the First Changhua Factory
Address:	No. 16, Gognqu 7^th Rd., Houliao Village, Fangyuan Town, Changhua County, Taiwan
Date of Foundation:	1989-01-30
Date of Registration:	1991-11-13
Factory Registration Number:	99645359
Factory Manager:	Chunjing Zhang
Status:	In Production
Date of Last Annual Return:	2011-4-15
Major Products:	111 spinning
2
Name:	the Second Changhua Factory
Address:	No. 47, Gognqu Rd., Houliao Village, Fangyuan Town, Changhua County, Taiwan
Date of Foundation:	19940-5-30
Date of Registration:	1994-07-19
Factory Registration Number:	99645358
Factory Manager:	Junzhong Cai
Status:	In Production
Date of Last Annual Return:	2014-06-30
Major Products:	111 spinning
3
Name:	the Third Changhua Factory
Address:	No. 16, Gognqu 10th Rd., Houliao Village, Fangyuan Town, Changhua County, Taiwan
Date of Foundation:	1997-01-06
Date of Registration:	1998-03-04
Factory Registration Number:	99645355
Factory Manager:	Junzhong Cai
Status:	In Production
Date of Last Annual Return:	2014-06-30
Major Products:	111 spinning
4
Name:	the Fifth Changhua Factory
Address:	No. 6, Gognqu 9th Rd., Houliao Village, Fangyuan Town, Changhua County, Taiwan
Date of Foundation:	1997-1-6
Date of Registration:	1998-5-11
Factory Registration Number:	99645361
Factory Manager:	Maoqi Xu
Status:	In Production
Date of Last Annual Return:	2008-12-23
Major Products:	111 spinning
5
Name:	Changhua Chemical Fiber Factory
Address:	No. 38, Gongye Rd., Houliao Village, Fangyuan Town, Changhua County, Taiwan
Date of Foundation:	1994-06-21
Date of Registration:	1997-07-23
Factory Registration Number:	99645354
Factory Manager:	Wenxian Zhang
Status:	In Production
Date of Last Annual Return:	2016-11-17
Major Products:	185 synthetic fiber 184 synthetic resin, plastic and rubber 339 other unclassified products
6
Name:	The 1^st Zhongli Factory
Address:	No. 6 and 8, Dingan Rd., Neiding Li, Zhongli Dist., Taoyuan, Taiwan
Date of Foundation:	1969-01-01
Date of Registration:	1982-07-15
Factory Registration Number:	99621446
Factory Manager:	Hanqing Chen
Status:	In Production
Date of Last Annual Return:	2016-01-05
Major Products:	111 spinning

Shareholders

Major Shareholders

Name	Subscription Shares
Shaoyi Guo
13,475,123
Li Peng Enterprise Co., Ltd.	71,290,197
Dongting Investment Co., Ltd. (Literal Translation)	76,336,784
Shunyu Investment Co., Ltd. (Literal Translation)	15,359,913
Zongqi Hong	3,031,920

Shareholder Information:

1
Registered Name:	Li Peng Enterprise Co., Ltd.
Registered Address:	6F, No. 162, Songjiang Rd., Zhongshan Dist., Taipei City, Taiwan
Date of Foundation:	1975-8-30
Registration Number:	33955322
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 12,000,000,000
Paid-up Capital:	NTD 9,144,872,420
Legal Representatives:	Shaoyi Guo
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2018-01-08
2
Registered Name:	Dongting Investment Co., Ltd. (Literal Translation)
Registered Address:	11F, No. 162, Songjiang Rd., Zhongshan Dist., Taipei City, Taiwan
Date of Foundation:	2005-10-03
Registration Number:	27955605
Registry:	Taipei City Government
Registered Capital:	NTD 36,000,000
Paid-up Capital:	NTD 36,000,000
Legal Representatives:	Shaoyi Guo
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2016-07-07
3
Registered Name:	Shunyu Investment Co., Ltd. (Literal Translation)
Registered Address:	11F, No. 162, Songjiang Rd., Zhongshan Dist., Taipei City, Taiwan
Date of Foundation:	2009-04-17
Registration Number:	33955322
Registry:	Taipei City Government
Registered Capital:	NTD 50,000,000
Paid-up Capital:	NTD 50,000,000
Legal Representatives:	Yongtian Cao
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2017-07-10

Management Information

Core Management

Directors

1
Name		Shaoyi Guo
Position		Chairman of the Board & Manager
Date of Appointment for Manager		1997-10-22
2
Name	Shuzhen Guo
Position		Director
3
Name	Chunjing Zhang
Position		Director
4
Name	Kezhong Guo
Position		Director
5
Name	Zongqi Hong
Position		Director
6
Name	Ji’an Guo
Position		Director
7
Name	Daoming Li
Position		Independent Director
8
Name	Qichang Lu
Position		Independent Director
9
Name	Yulun Ou
Position		Independent Director

Personnel Structure

Total Employees

About 1,170 Employees About 3,500 Employees (Group)

Operation Information

Offices & Factories

	Headquarters
Add	11F. No.162, Sung Chiang Rd., Taipei, Taiwan, R.O.C.

Production Information

Subject is engaged in manufacturing of polyester yarn, etc.

Subject has factories in Taiwan for production.

Subject obtained the certification of ISO9000, ISO 14001, OHSAS 18001.

Purchase Information

The registered activities of subject:

Business Code	Details
A102060	The food business
A401020	Livestock and poultry raising industry.
C301010	The spinning industry
C302010	Weaving industry
C399990	Other textile and manufacturing industries.
C601990	Other paper products manufacturing.
C701010	Printing
C702010	The plate making industry
C801100	Synthetic resin and plastic manufacturing.
C801120	Artificial fiber manufacturing
D101050	Automobile and electric co. business
F104110	Clothing, clothing, shoes, hats, umbrellas, clothing wholesale industry.
F108040	Cosmetics wholesale industry.
F208040	Cosmetics retailing.
F208050	Class b pharmaceutical retail.
F111090	Wholesale of building
F113010	Machinery wholesale
F114010	Automobile wholesale
F114030	Automobile and motorcycle parts are equipped with wholesale industry.
F201010	Agricultural retail
F204110	Clothing, clothing, shoes, hats, umbrellas, apparel retail
F211010	Building materials retail business
F213080	Machinery and appliance retailing.
F214010	Auto retail
F214030	Steam and locomotive parts are equipped with retail.
F301010	Department store
F301020	Supermarket industry
F401010	International trade
F501030	Beverage store industry
F501060	Restaurant industry
G202010	The parking lot is open
H701040	Specific professional area development industry.
H701060	New town and new community development
IZ99990	Other business services
J701020	The amusement park industry
J701040	Leisure activities venue industry.
J801030	Sports and leisure sports venues
JA01010	Car repair
JE01010	Leasing industry
IG01010	Biotechnology services
IG02010	Research and development of services
H701010	Residential and building development rental industry.
H701020	Industrial plant development and leasing industry.
H703090	Real estate
H703100	Real estate leasing
ZZ99999	Besides licensed business, all other business items those are not banned or restricted.

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

Sales Information

Subject is engaged in sales of polyester yarn, etc.

The major products include polyester yarn, PET granules, nylon textured yarn, composite filament, functional fiber and regenerated polyester fiber, etc.

Subject’s sales regions include domestic market, Indonesia, Vietnam, Southeast Asia, etc.

It is introduced that subject has an office in Shanghai City, Mainland China for sale service.

Subject’s major customers are manufacturers of cloth, etc.

Import and export right:

Import right	Yes
Export right	Yes

Settlements

Purchase

Domestic Purchase

Products	Raw materials
Payment Terms	T/T, Cash, etc.

Import

Products	Raw materials
Payment Terms	L/C, T/T, etc.

Sales

Domestic Markets

Product	Polyester yarn, etc.
Selling Terms	T/T, Cash, etc.

Export

Product	Polyester yarn, etc.
Selling Terms	L/C, T/T, etc.

Balance Sheet

Unit: NTD/000

Consolidated	2017-12-31	2016-12-31
Assets
Current assets
Cash and cash equivalents
Total cash and cash equivalents	1,695,109	3,532,127
Current financial assets at fair value through profit or loss
Total current financial assets at fair value through profit or loss	227,566	126,818
Notes receivable, net
Notes receivable, net	183,924	169,888
Notes receivable due from related parties, net
Notes receivable due from related parties, net	123,418	101,022
Accounts receivable, net
Accounts receivable, net	947,325	792,255
Accounts receivable due from related parties, net
Accounts receivable due from related parties, net	104,958	114,877
Other receivables due from related parties
Other receivables due from related parties, net	49,000	121,000
Inventories
Inventories, manufacturing business
Inventories, manufacturing business, net	2,380,045	1,987,941
Inventories (for construction business)
Inventories (for construction business), net	36,838	45,314
Total inventories	2,416,883	2,033,255
Prepayments
Total prepayments	78,804	69,819
Other current assets
Other current financial assets	108,402	1,205,626
Other current assets, others	13,671	14,577
Total other current assets	122,073	1,220,203
Total current assets	5,949,060	8,281,264
Non-current assets
Non-current financial assets at cost
Non-current financial assets at cost, net	1,492	22,566
Non-current bond investment without active market
Total Non-current investments in debt instrument without active market	73,948	15,964
Investments accounted for using equity method
Investments accounted for using equity method, net	5,162,522	4,569,262
Property, plant and equipment
Total property, plant and equipment	6,899,764	6,287,912
Intangible assets
Goodwill	63,337	0
Other intangible assets, net
Other intangible assets, net	3,161	4,316
Total intangible assets	66,498	4,316
Deferred tax assets	132,650	107,842
Other non-current assets
Prepayments for business facilities	278,923	47,554
Other non-current assets, others
Total other non-current assets, others	30,345	46,038
Total other non-current assets	309,268	93,592
Total non-current assets	12,646,142	11,101,454
Total assets	18,595,202	19,382,718
Liabilities and equity
Liabilities
Current liabilities
Short-term borrowings
Total short-term borrowings	2,272,397	3,860,000
Short-term notes and bills payable
Total short-term notes and bills payable	560,000	1,790,000
Current financial liabilities at fair value through profit or loss
Total current financial liabilities at fair value through profit or loss	44,274	11,248
Notes payable
Total notes payable	335,584	237,512
Notes payable to related parties
Total notes payable to related parties	54,845	44,459
Accounts payable
Total accounts payable	785,122	600,647
Accounts payable to related parties
Total accounts payable to related parties	28,076	39,259
Other payables
Other payables, others	409,283	374,937
Total other payables	409,283	374,937
Other payables to related parties	266,000	225,500
Current tax liabilities	7,156	6,102
Other current liabilities
Long-term liabilities, current portion
Total long-term liabilities, current portion	16,000	42,667
Other current liabilities, others	270,258	118,257
Total other current liabilities	286,258	160,924
Total current liabilities	5,048,995	7,350,588
Non-current liabilities
Long-term borrowings
Total long-term borrowings	900,000	16,000
Deferred tax liabilities
Total deferred tax liabilities	96,659	107,786
Other non-current liabilities
Net defined benefit liability, non-current	411,628	377,991
Guarantee deposits received	1,551	1,464
Total other non-current liabilities	413,179	379,455
Total non-current liabilities	1,409,838	503,241
Total liabilities	6,458,833	7,853,829
Equity
Equity attributable to owners of parent
Share capital
Ordinary share	9,573,029	9,573,029
Total capital stock	9,573,029	9,573,029
Capital surplus
Total capital surplus	72,312	77,848
Retained earnings
Legal reserve	487,091	480,811
Special reserve	40,464	40,464
Unappropriated retained earnings (accumulated deficit)
Total unappropriated retained earnings (accumulated deficit)	530,707	560,688
Total retained earnings	1,058,262	1,081,963
Other equity interest
Total other equity interest	303,775	24,389
Treasury shares	28,470	28,470
Total equity attributable to owners of parent	10,978,908	10,728,759
Non-controlling interests	1,157,461	800,130
Total equity	12,136,369	11,528,889
Total liabilities and equity	18,595,202	19,382,718
Equivalent issue shares of advance receipts for ordinary share	0	0
Number of shares in entity held by entity and by its subsidiaries	10,774,028	10,774,028

Profit and Loss Account

Unit: NTD/000

Consolidated	2017	2016
Operating revenue
Net sales revenue
Net sales revenue	11,104,529	9,599,920
Construction and engineering revenue
Total construction and engineering revenue	0	12,822
Total operating revenue	11,104,529	9,612,742
Operating costs
Cost of sales
Total cost of sales	10,279,891	8,900,600
Cost of construction and engineering service sales
Total cost of construction and engineering service sales	8,476	16,922
Total operating costs	10,288,367	8,917,522
Gross profit (loss) from operations	816,162	695,220
Unrealized profit (loss) from sales	0	40
Realized profit (loss) on from sales	469	0
Gross profit (loss) from operations	816,631	695,180
Operating expenses
Selling expenses
Total selling expenses	413,510	325,488
Administrative expenses
Total administrative expenses	238,371	203,183
Research and development expenses
Total research and development expenses	63,234	46,227
Total operating expenses	715,115	574,898
Net operating income (loss)	101,516	120,282
Non-operating income and expenses
Other income
Total other income	179,274	119,608
Other gains and losses
Other gains and losses, net	-246,226	-118,737
Finance costs
Finance costs, net	67,079	55,383
Share of profit (loss) of associates and joint ventures accounted for using equity method
Share of profit (loss) of associates and joint ventures accounted for using equity method, net	14,537	20,666
Total non-operating income and expenses	-119,494	-33,846
Profit (loss) from continuing operations before tax	-17,978	86,436
Tax expense (income)
Total tax expense (income)	30,010	16,889
Profit (loss) from continuing operations	-47,988	69,547
Profit (loss)	-47,988	69,547
Other comprehensive income
Components of other comprehensive income that will not be reclassified to profit or loss
Gains (losses) on remeasurements of defined benefit plans	-10,548	-31,054
Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will not be reclassified to profit or loss
Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will not be reclassified to profit or loss	-2,051	-9,797
Components of other comprehensive income that will not be reclassified to profit or loss	-12,599	-40,851
Components of other comprehensive income that will be reclassified to profit or loss
Exchange differences on translation	-36,749	-3,323
Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will be reclassified to profit or loss
Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will be reclassified to profit or loss	325,597	-107,519
Components of other comprehensive income that will be reclassified to profit or loss	288,848	-110,842
Other comprehensive income, net	276,249	-151,693
Total comprehensive income	228,261	-82,146
Profit (loss), attributable to:
Profit (loss), attributable to owners of parent	-12,936	62,804
Profit (loss), attributable to non-controlling interests	-35,052	6,743
Comprehensive income attributable to:
Comprehensive income, attributable to owners of parent	255,685	-80,082
Comprehensive income, attributable to non-controlling interests	-27,424	-2,064
Basic earnings per share
Basic earnings (loss) per share from continuing operations	-0.01	0.07
Total basic earnings per share	-0.01	0.07

Cash Flows

Unit: NTD/000

Consolidated	2017	2016
Cash flows from (used in) operating activities, indirect method
Profit (loss) from continuing operations before tax	-17,978	86,436
Profit (loss) before tax	-17,978	86,436
Adjustments
Adjustments to reconcile profit (loss)
Depreciation expense	602,710	580,464
Amortization expense	54,184	72,475
Provision (reversal of provision) for bad debt expense	-19,555	871
Net loss (gain) on financial assets or liabilities at fair value through profit or loss	12,968	22,842
Interest expense	67,079	55,383
Interest income	-73,204	-54,064
Dividend income	-2,938	-2,994
Share of loss (profit) of associates and joint ventures accounted for using equity method	-14,537	-20,666
Loss (gain) on disposal of property, plant and equipment	-11,899	-1,177
Loss (gain) on disposal of investments	-25,616	-11,674
Impairment loss on financial assets	74	0
Reversal of impairment loss on financial assets	-653	0
Impairment loss on non-financial assets	12,936	0
Reversal of impairment loss on non-financial assets	0	-1,950
Unrealized profit (loss) from sales	-469	40
Unrealized foreign exchange loss (gain)	82,986	-38,207
Total adjustments to reconcile profit (loss)	684,066	601,343
Changes in operating assets and liabilities
Changes in operating assets
Decrease (increase) in financial assets held for trading	-79,564	1,867
Decrease (increase) in notes receivable	-36,832	-164,241
Decrease (increase) in accounts receivable	-98,575	-192,619
Decrease (increase) in inventories	-257,851	-348,235
Decrease (increase) in prepayments	-63,123	-71,055
Decrease (increase) in other current assets	896	-5,298
Decrease (increase) in other financial assets	1,109,615	-1,151,079
Decrease (increase) in other operating assets	-1,314	-187
Total changes in operating assets	573,252	-1,930,847
Changes in operating liabilities
Increase (decrease) in notes payable	108,458	224,124
Increase (decrease) in accounts payable	110,498	40,613
Increase (decrease) in other payable	-133,568	3,457
Increase (decrease) in other current liabilities	144,180	38,312
Increase (decrease) in net defined benefit liability	-90,024	-43,633
Total changes in operating liabilities	139,544	262,873
Total changes in operating assets and liabilities	712,796	-1,667,974
Total adjustments	1,396,862	-1,066,631
Cash inflow (outflow) generated from operations	1,378,884	-980,195
Interest received	80,717	53,051
Dividends received	32,205	65,568
Interest paid	-66,829	-54,428
Income taxes refund (paid)	-13,014	-65,288
Net cash flows from (used in) operating activities	1,411,963	-981,292
Cash flows from (used in) investing activities
Acquisition of investments in debt instrument without active market	-90,779	-45,325
Proceeds from disposal of investments in debt instrument without active market	31,245	91,944
Acquisition of financial assets at cost	-20,000	-20,000
Proceeds from disposal of financial assets at cost	0	48,618
Acquisition of investments accounted for using equity method	-274,204	0
Proceeds from disposal of investments accounted for using equity method	49,830	0
Net cash flow from acquisition of subsidiaries	-311,141	0
Acquisition of property, plant and equipment	-792,839	-433,847
Proceeds from disposal of property, plant and equipment	23,192	5,225
Increase in refundable deposits	-3,574	2,555
Increase in other receivables due from related parties	72,000	129,533
Acquisition of intangible assets	-1,923	-2,344
Net cash flows from (used in) investing activities	-1,318,193	-223,641
Cash flows from (used in) financing activities
Increase in short-term loans	-1,797,956	1,677,000
Increase in short-term notes and bills payable	-1,230,000	-90,000
Proceeds from long-term debt	900,000	0
Repayments of long-term debt	-42,667	-249,333
Decrease in guarantee deposits received	1,444	-126
Increase in other payables to related parties	40,500	213,500
Cash dividends paid	0	-473,265
Change in non-controlling interests	250,772	-60,620
Net cash flows from (used in) financing activities	-1,877,907	1,017,156
Effect of exchange rate changes on cash and cash equivalents	-52,881	28,071
Net increase (decrease) in cash and cash equivalents	-1,837,018	-159,706
Cash and cash equivalents at beginning of period	3,532,127	3,691,833
Cash and cash equivalents at end of period	1,695,109	3,532,127
Cash and cash equivalents reported in the statement of financial position	1,695,109	3,532,127

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
Registered Number:	105070
Debtor Name:	Lealea Enterprise Co., Ltd.
Registry:	MOEA Central Office
Name of Mortgagee:	Shanghai Commercial Savings Bank, Ltd. Shilin Branch
Date of Registration:	2011-11-29
Amount of Secure Claims:	NTD 252,000,000
Type of Mortgage:	Machinery equipment or tools
2
Case Type:	Chattel Mortgage
Registered Number:	104347
Debtor Name:	Lealea Enterprise Co., Ltd.
Registry:	MOEA Central Office
Name of Mortgagee:	Mega International Commercial Bank Co., Ltd. Dunhua Branch
Date of Registration:	2011-07-26
Amount of Secure Claims:	NTD 480,000,000
Type of Mortgage:	Machinery equipment or tools

Lawsuits

1
Trial Number:	2017, beibu, 767
Date of Trial:	2017-09-29
Reason:	To pay the cheque
Claimant:	Zhiwei Huang
Defendant:	Lealea Enterprise Co., Ltd.
2
Trial Number:	2010, beijian, 5279
Date of Trial:	2010-05-31
Reason:	To pay the goods
Claimant:	Lealea Enterprise Co., Ltd.
Defendant:	Yabo Co., Ltd. (Literal Translation)

Special Note

Interview Details

Name	Mr. Jiang
Department	Sales Department
E-mail:	jiang@lealea.com.tw

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 67.11
UK Pound	1	INR 90.85
Euro	1	INR 80.12
TWD	1	INR 2.25

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

INFORMATION DETAILS

Analysis Done by :	VIV
Report Prepared by :	TPT

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.