CHINA CREDIT INFORMATION SERVICE, LTD.
IN-DEPTH REPORT
BASIC INFORMATION
CCIS Rating: B+CCIS Risk Index: L3
Name: CHINESE TECHNOLOGY CO., LTD.
Registered Address: No. 5000, Chung Hua Rd., Hsichih City, Taipei Hsien, Taiwan, R. O. C.
URL: www.abcd.com.tw
E- Mail:
Tel: 02-12345678
Fax: 02-87654321
Registration No.: 12345678
No. of Employees: 190
Established: Aug. 15, 1986
Business Type: Manufacture
Business Size: Medium
Legal Form: Company limited by shares
Trend: With development potential
CREDIT GRADE
Credit Factors / Items / Criterion / ScoreManagement Factors / Organizational Background/
Management Capability / 1~20 / 15
Facilities & Sales / 1~25 / 17
Financial Factors / Financial Security (Structure & Solvency) / 1~15 / 12
Turnover Capability / 1~10 / 6
Profitability/Earning Ability / 1~10 / 7
Operation & Environment Factors / Current Operation / 1~5 / 3
Operation environment / 1~10 / 7
Future Prospect / 1~5 / 3
Total / 100 / 70
FACTORY OR BRANCH OFFICE:
Actual Operating Office & Hsichih Factory
Address: No. 5000, Chung Hua Rd., Hsichih City, Taipei Hsien
Reg. No: 99-000000-00
Tel: 02-12345678
Fax: 02-87654321
Tatung Factory
Address: No. 352, 354, Sec. 1, Ta Tung Rd., Hsichih City, Taipei Hsien
Reg. No: 99-000000-01
Tel: 02-12345679
MAJOR AFFILIATE(S):
Name: Cybersys Technology Inc.
Person-in-charge: Chang San
Major business activities: Investment holding
Name: Formosa Holding Limited
Person-in-charge: Chang San
Major business activities: Investment holding
Name: Lian Ting Investment Co., Ltd.
Reg. No: 0001111
Person-in-charge: Wang Wu
Major business activities: Investment and re-investment
HISTORY:
Originally established as Chinese Technology Ltd., in Aug. 1986, Subject came to assume its present name and form in Dec. 1999.
SIGNIFICANT HISTROICAL AFFAIRS:
Year / SummaryOct. 2002 / Approved as an OTC enterprise by SFI (Securities & Futures Institute)
Mar. 2002 / Shares registered in the Emergency Stock Market
2001 / Approved as a Public-Issued Company by SFI
2000 / Moved to Head Office at Chung Hua Rd., Hsichih City and merged & acquired Taiwan Technology Co., Ltd.
1995 / Entered into LCD industry after merger & acquisition of a LCD manufacturer and started R & D and manufacture of the 10.4-inch LCD
1986. / Founded by person-in-charge Mr. Chang San with an initial capital of NT$5,000,000 on Aug. 15, 1986 and engaged in manufacturing and selling of VGA Card
BUSINESS ACTIVITIES AT PRESENT (RANKING BY SALES REVENUE OF PRODUCT):
1. Manufacture & sale of LCD
2. Other electronic information products
3. Manufacture & sale of VGA Card
VARIATION OF CAPITAL: (NT$1,000)
Established with an initial registered capital of NT$5,000, paid up fully to NT$5,000.
In Mar. 1999 changed to NT$10,000, paid up fully to NT$10,000.
In Jul. 1999 changed to NT$30,000, paid up fully to NT$30,000.
In Jun. 2000 changed to NT$60,000, paid up fully to NT$60,000.
In Dec. 2000 changed to NT$300,000, paid up partly to NT$149,194.
In Jul. 2001 changed to NT$300,000, paid up partly to NT$212,356.
In Mar. 2002 changed to NT$300,000, paid up partly to NT$270,356.
In Sep. 2002 changed to NT$600,000, paid up partly to NT$356,900.
In Nov. 2002 changed to NT$600,000, paid up partly to NT$400,000.
SHAREHOLDERS STRUCTURE:
Subject is
OTC Enterprise (No. 12345)
MAJOR SHAREHOLDERS
Total Number of Shareholders is 11.
Board of Directors
Name / Position / Shares (NT$1,000) / Percentage of TotalCHANG SAN / Chairman / 58,969 / 14.74
LIN SI / Director / 1,021 / 0.25
CHIAN WU / Director / 1,076 / 0.27
External director
CHAO LIU / Director / -- / --
General Manager of Hua Lian Co., Ltd.
FAN CHIH / Director / 14,412 / 3.60
Spouse of Chang San
WU PA / Supervisor / 5,938 / 1.48
Rep. of Taiwan Insurance Co., Ltd.
CHANG CHIU / Supervisor / 34,209 / 8.55
TAI SHIH / Supervisor / 130 / 0.03
MANAGEMENT:
Founder –
Chang San
Chairman-cum-General Manager -
Name: Mr. Chang San (a.k.a. Chang Three)
Birthday: Nov. 1, 1961
Birth Place: Hualian Hsien, Taiwan
ID Number: U111111100
Address: No. 1000, Chung Hua Rd., Hsichih City, Taipei Hsien
Academic Qualifications: A university graduate
Working Experience(s):
Mr. Chang San has worked in this line for 15 years.Relationship with founder:
Himself
Participates in operation: Yes
Other Incumbent Position(s):Name of Organization / Position / Main Business Activities
Ampire Co., Ltd. / Chairman / General investment
Taiwan Optical Technology Co., Ltd. / Director / Electronic products manufacture
Cybersys Technology Inc. / Person-in-charge / Investment holding company
Formosa Holding Limited / Person-in-charge / Investment holding company
Note: the above information on management is provided by subject’s spokesman.
PREMISES:
Office & Hsichih Factory – Company-owned land space of 251.86 square meters. Mortgaged: Yes
Company-owned floor space of 1,546.22 square meters. Mortgaged: Yes
Tatung Factory – Company-owned land space of 237.86 square meters. Mortgaged: Yes
Company-owned floor space of 1,464.24 square meters. Mortgaged: Yes
Note: Information provided from public data. Ownership status of the premises has not been verified and should conform to the official record(s) registered at local land administration authority.
MAJOR PRODUCTION FACILITIES:
Item / Unit / No.Color filter / Set / 2
CUV Circulation equipment / Set / 2
3.5G 620mm*750mm Glass substrates production line / Set / 1
MORTGAGE OF TANGIBLE ASSETS RECORDS
Subject has been reported no mortgage record on any of its tangible assets.
Note: The above record is based on the public announcements by concerned authorities of Taiwan Province and Taipei City. They are for reference only.
OPERATING INCOMES 2000 - 2002: (In NT$1,000)
Year / 2002 / 2001 / 2000Item / Operating Income / % / Operating Income / % / Operating Income / %
Domestic Sales / 1,630,786 / 52.78 / 786,501 / 52.90 / 246,263 / 27.73
Export Value / 1,459,228 / 47.22 / 700,367 / 47.10 / 641,797 / 72.27
Total / 3,090,014 / 100 / 1,486,868 / 100 / 888,060 / 100
Growth (%) / 107.82 / 67.43 / --
OPERATING INCOMES OF 2002 BY PRODUCT: (In NT$1,000)
PRODCUT / AMOUNT / ％LCD / 2,921,192 / 94.54
Other products / 168,650 / 5.45
VGA Card / 172 / 0.01
SALES PERFORMANCE JANUARY~APRIL, 2003: (NT$1,000)
789,058 100%
TRADE REFERENCES:
Local Suppliers: / Taipei Enterprise Co., Ltd.Product: / LCD
Local Suppliers: / Taoyuan Electronic Enterprise Co., Ltd.
Product: / Power supplier
Local Suppliers: / KeeLung Co., Ltd.
Product: / Resistor
Local Suppliers: / Hsin Chu Electronics Co., Ltd.
Product: / LCD Panel
Local Suppliers: / Yi Lan Co., Ltd.
Product: / Signal wire
Payment Terms: / (monthly settlement)30 days post-dated check or T/T 100%
Overseas Suppliers:
Product: / LCD Panel
Area: / Japan and South Korea
Payment Terms: / L/C 60%, T/T 40%
Local Customers: / Hua Lian Co., Ltd.
Product: / VGA Card and LCD Monitor
Payment Terms: / (monthly settlement) 75 days post-dated check 100%
Local Customers: / Tai Tung Co., Ltd.
Product: / VGA Card and LCD Monitor
Payment Terms: / (monthly settlement) 90-120 days post-dated check 100%
Local Customers: / Ping Tung Co., Ltd.
Product: / VGA Card and LCD Monitor
Payment Terms: / LOCAL L/C 100%
Overseas Customers:
Product: / VGA Card and LCD Monitor
Area: / US and Europe
Payment Terms: / L/C 40%, T/T 30%, O/A 30%
BANKERS:
- Land Bank of Taiwan, Hsichih Branch - A/C No.0000, opened in Oct. 1999; current balance NT$1,000,000~3,000,000; relation normal. Tel : 02-22222227.
PAYMENT RECORD:
Subject has been reported no dishonored banking record.
Subject’s chairman-cum-general manager has been reported no dishonored banking record.
Note: The above banking record is based on the data obtained from the Clearing House as of 2003
BOUNCED CHECK RECORD:
Subject has been reported no bounced check record since Jun. 30, 2001.
Subject’s chairman-cum-general manager has been reported no bounced check record since Jun. 30, 2001.
Note: The above record is based on the data obtained from the Clearing House as of 2003. The record does not include those that had been closed nor that are over one year, even not yet closed.
BIDDING FORBIDDEN RECORD:
Subject has been reported no forbidden record bidding for government projects since Jan. 1, 2002.
The above record is based on the announcement of concerned government institutes. It is for reference only.
PUBLIC LITIGIOUS RECORD:
□ / Subject has reported no lawsuit record in the last two years.The above lawsuit record is based on the communiqué obtained from the Judicial Yuan of the Republic of China.
REGISTRATION OF PATENTS
Subject has been reported no registration of patent being awarded.
Note: The above record is based on the data obtained from the concerned authority.
IMPORTANT CERTIFICATIONS OR HONORS
Year / ContentDec. 2000 / National Small & Medium Enterprise Award
Apr. 1998 / Awarded Annual National Exquisite Prize for product - Super100 LCD
Jul. 1997 / Award the ISO-14000 Certificate for Tatung Factory
May 1996 / Award the ISO-9002 Certificate for Hsichih Factory
BUSINESS STATUS:
Subject is belonging to member of the Chinese Technology Group.
Name of core company: Chinese Technology Co., Ltd.
Ranking on total assets of the Group: 150
Total No. of affiliates of the Group: 15
The above record is based on Business Groups in Taiwan by CCIS.
BUSINESS RANKING:
2002 / 2001 / 2000Annual Sales / 555 / 712 / --
Sales Growth / 88 / 92 / --
Pre-Tax Net Income / 355 / 447 / --
Return on Sales / 544 / 576 / --
Ranking in Concerned Industry
(manufacture) / 66 / 99 / --
Ranking in Export/Import Value / 772 / 901 / 1063
Export Value (USD1,000,000) / 20.23 / 19.69 / 21.27
Import Value (USD1,000,000) / 10.23 / 6.72 / 6.24
Source: Top 5000: Largest Corporations in Taiwan, and Business Groups in Taiwan. China Credit Information Service; Directory of Outstanding Importers and Exporters in Taiwan, Ministry of Economic Affairs
FINANCIAL PROFILE FOR YEARS 2000~2002: (in NT$1,000)
Financial Index / 2002 / 2001 / 2000Paid-In Capital / 400,000 / 212,355 / 149,193
Net Worth / 844,575 / 412,990 / 323,961
Total Liabilities / 889,310 / 794,400 / 360,311
Total Assets / 1,733,885 / 1,207,390 / 684,272
BUSINESS PERFORMANCE 2000~2002: (NT$1,000)
Financial Index / 2002 / 2001 / 2000Net Sales / 3,090,014 / 1,486,868 / 888,060
Operating Profits / 137,183 / 89,773 / 113,007
Current Period Profits / 81,817 / 100,564 / 77,442
Please be noted that the above financial figures are:
þ based on subject’s2000~2002 financial statements (CPA audited)
n SIGNIFICANT NEWS FROM PUBLIC MEDIA
Subject has been reported on the following significant news in public media in the last year.Date / Title / Source / Summary
Jul. 16, 2000 / Merger & Acquisition / Commercial Times / Subject merged with Taiwan Technology Co., Ltd.
Jun. 8, 2001 / Strategic Alliance / Economic Daily / Subject made the strategic alliance with the Japanese LKK to develop new LCD Panel.
The above record is based on the reports from Commercial Times and Economic Daily for reference only.
GENERAL INFORMATION:
Industrial Trend
After the peak of panel price in the TFT-LCD market in June of 2002, demand was not as good as expected. The panel price dropped due to the down-stream manufacturers faced the pressure to reduce their stocks on one hand; and the launch of the fifth generation of panel from South Korean brought about a predicted oversupply of the product on the other. Even though the first quarter of 2003 saw a slight rise of monitor panel price in Taiwan, South Korea and Japan, the likelihood reducing demand because of such price increase did not materialize owing to the concerned monitor manufacturers are cautious in increasing their product prices. This suits the panel manufacturers. As the 17’’ display being the mainstream in the market, industry dealers all rush to readjust their production lines to produce the 17’’ display, in addition, industry dealers in Taiwan and South Korea actively plan to put next generation panel into production, which will enlarge the market supply in the future. Consequently, 17’’ panel is estimated to reduce in the second quarter of 2003. As far as 15’’ panel is concerned, its price is expected to increase, due to decreasing supply caused by 17’’ panel. Another reason is that part of the manufacturers of 15” panels are still suffering losses, they intend to make up the deficit by price increase.
Fortunately, quite a number of the western large-sized companies, as a result of their original OEM manufacturers in South Korea are developing their own branded products, start to switch their orders to Taiwan, this will definitely help local manufacturers here in the second quarter of the year. When it comes to the influences of SARS epidemic, domestic TFT-LCD panel manufacturers suffer slightly, because most of production bases are located in Taiwan. But if the situation is not brought under control quickly, it will have negative effects for sure.
Organizational Background & Management
Subject is collectively founded by Mr. Chang San with his friends. Later, two corporate shareholders joined in, namely Taiwan Insurance Co., Ltd. and Yih Ting Investment Development Co., Ltd. Its stock became public issued on Jul. 30, 2001 and was approved OTC in Oct. 2002. Thus, subject ‘s organizational background is considered fair.
Chairman-cum-General Manager Mr. Chang San set up subject after retiring from army. Subject becomes its present size after nearly 20 years of operations. Its operation capability is considered solid.
Facilities & Business Performance
1. Important assets introduction:
Subject’s operating office shares the same address at No. 5000, Chung Hua Rd., Hsichih City, Taipei Hsien with its factory in Hsichih. Subject bought this land in Oct. 1999 with a land area of 237.86 sq. meters and workshop area of 1,464.24 sq. meters. The present total staff enrollment is 110. In addition, subject’s factory in Ta Tung is located at No. 1000-1001, Sec. 1, Ta Tung Rd., Hsichih City, Taipei Hsien and subject bought this land in Apr. 2001 with a land area of 251.86 sq. meter. There are 35 staff working there.
2. Operating income analysis
Subject showed an operating income of NT$3,090,014,000 in 2002, a large growth of 107.82% compared with that of 2001. Apart from that the demand for LCD is increasing, subject also has the niche of possessing small-size products which serve special purposes is also one of the reasons for its tremendous growth. This unique product alone generated a total sales of NT$541,360,000 in 2002, growing about 31.50% compared with that in 2001. Furthermore, subject has signed sales contracts with leading POS system manufacturers in Europe through IPO in Taiwan. It also secure orders from overseas on defense and industrial LCD displays. These all contribute to the remarkable growth of the subject in recent years.