sample reports (taiwan) ltd d-u-n-s: 65-625-1469 report tw sample03… · table based on an...

D&B IMPEX REPORT

FOR THE EXCLUSIVE USE OF SAMPLE REPORTS (TAIWAN) LTD.

Sample Reports (Taiwan) Ltd

D-U-N-S: 65-625-1469

Presented by : Information Resources Department

D&B Taiwan Date : March 7, 2003

Copyright 2003 Dun & Bradstreet International (Shanghai) Ltd.

D&B IMPEX REPORT 1 TABLE OF CONTENTS TTAABBLLEE OOFF CCOONNTTEENNTTSS

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EXECUTIVE OVERVIEW Risk Assessment COMPANY PROFILE

1) Summary 2) Company History

Registration Details Capital & Shareholders Company Developments

3) Organization Structure Principals

4) Financial Status Balance Sheet Profit & Loss Statement Key Ratios Financial Analysis

5) Banking Information 6) Payment Information 7) Operations

Business Scope Purchasing Territory & Terms Sales Territory & Terms Import / Export Status Employee Size

8) Location 9) Related Companies

Ultimate Parent Parent Subsidiaries Affiliates

GLOSSARY OF TERMS D-U-N-S CERTIFICATE

All monetary amounts in this report are quoted in NEW TAIWAN DOLLARS unless otherwise stated.

THIS REPORT MAY NOT BE REPRODUCED IN WHOLE OR IN PART IN ANY FORM OF MANNER WHATSOEVER. This report, furnished pursuant to contact for the exclusive use of the subscriber as one factor to consider in connection with credit, insurance, marketing or other business decisions, contains information compiled form sources which Dun & Bradstreet International (Shanghai) does not control and whose information, unless otherwise indicated in the report, has not be verified. Dun & Bradstreet International (Shanghai) Ltd. in no way assumes any part of the user’s business risk, doe not guarantee the accuracy, completeness, or timeliness of the information provided, and shall not be liable for any loss or injury whatever resulting from contingencies beyond its control or from negligence.

D&B IMPEX REPORT 2

EXECUTIVE OVERVIEW EEXXEECCUUTTIIVVEE OO VVEERRVVIIEEWW

Sample Report (Taiwan) Ltd. D-U-N-S Number 65-625-1469

Business Size Median-sized Cellular Phone and Related Equipment Producer

Risk Assessment - RI 1

Minimal Risk Level

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D&B Ratings – 5A3

Credit Condition: Fair. Comments

Strong Parent Background

Well Established Company

Support from Local Government

Operational Trend Up

Satisfactory Financial Position


D&B IMPEX REPORT 3

Risk As es ment RRiisskk AAssssseesssssmmeenntt

Sample Report (Taiwan) Ltd. RI 1

Risk Index Value

Observation Observed Business Failure rate

RI 1 Minimal risk 0.01%RI 2 Significantly lower than average risk level 1.09%RI 3 Lower than average risk level 1.8%RI 4 Slightly lower than average risk level 2.5%RI 5 Two times higher than average risk level 8.0%RI 6 Five times than average risk level 19.6%NA Assessment not available due to insufficient data - -

• The Risk Index “Observed Business Failure Rate” is based on the Index development sample.

When using the Index to make individual applicant decisions, a customized version of this

table based on an analysis of the Index against your customer account portfolio is

recommended.

RISK ANALYSIS

The Risk Index for this business is assigned primarily based on the following factors:

1. Solvency ratio suggests potential lower risk of financial strees.

2. No evidence of NSF Cheque activity in D&B files.

3. Information in D&B files indicates more than 50% of payment experiences are prompt.

4. Liquidity ratio suggests potential lower risk index with a lower risk of financial stress.

The D&B Risk index is based on a scale of 1 to 6, where 1 represents a lower and 6 a higher

percentage of observed business failures. The index is computed using available data in D&B’s

information database. Though the index does not predict the probability of business closure, it

reflects from a database profiling approach, the ratio of failed to operating businesses for each

Risk Index Level.

The Key Drivers and Average Weight in the Risk Index includes the following:


D&B IMPEX REPORT 4

KEY DRIVERS AVERAGE WEIGHT

Business Information 34% Legal Structure Employee Size Industry Authorized Capital Age of Company

Financial Information 34% Current Ratio Total Liabilities to Tangible Net Worth Sales Net Profit Return on Assets

Payment Information 29%

Prompt Payment Record Slow Payment Record NSF Cheques

Public Files 3%

Court Action Aggregated Risk Value (ARV) 2.65

Aggregated Risk Value (ARV) Credit Risk Index Distribution in D&B

Taiwan Database Industry Group Distribution

in D&B Taiwan Database0-2.741 (included) 1 0.01% 6%2.741-3.101(included) 2 1.09% 36%3.101-3.416(included) 3 1.8% 47%3.416-3.656(included) 4 2.5% 11%3.656-3.961(included) 5 8.0% 1%Greater than 3.961 6 19.6% 0%Subject is positioned in a minimal risk industry classification.


D&B IMPEX REPORT 5

COMPANY PROFILE CCOOMMPPAANNYY PPRROOFFIILLEE 1) SUMMARY

SUBJECT : SAMPLE REPORTS (TAIWAN) LTD DUNS NUMBER : 65-625-1469 ADDRESS : 8F, 800, MIN SHENG E. RD., SEC 3,

TAIPEI CITY 10556, TAIWAN (R.O.C.) CEO : SU, HUNG YAN/PRESIDENT TELEPHONE : (886) 02-27298888/27992812 FACSIMILE : (886) 02-27293333 YEAR EST. : 1988 LINE OF BUSINESS : SUBJECT IS MAINLY ENGAGED IN MANUFACTURING CELLULAR

PHONE AND RELATED EQUIPMENT.

LEGAL STATUS : A PUBLIC COMPANY LIMITED BY SHARES COMPANY SIC : 3663 0000 REG. CAPITAL : 600,000 THOUSANDS EMPLOYEES : 350 ( TOTAL) TURNOVER : 3,247,263 THOUSANDS IN 2001 SIZE : MEDIAN-SIZED HISTORY : CLEAR LITIGATION : NO CREDIT RATING : 5A3 THE D&B RATING OF 5A3 INDICATES A TANGIBLE NET WORTH

OVER $1,500,000,000. THE OVERALL CREDIT CONDITION IS CONSIDERED FAIR

NCRI : RI 1


D&B IMPEX REPORT 6 2) COMPANY HISTORY

a) Registration Details

Registration Date July 13, 1985 Registered Capital $600,000,000 Paid up capital $600,000,000 Registration Number 25550000 Legal Status A Public Company Limited by Shares Company Registration Authority The Department of Commerce Management Executive Su, Hung Yan

b) Capital & Shareholders

Registered Capital : $600,000 thousands Paid Up Capital : $600,000 thousands

Shareholder Shares % Taitai Enterprises Corp 55 Yang, Chin Sheng 5 Su, Hung Yan 2 Su, Ing Hin 2 Others 31 Total 100

Total Number of Shareholders: 862

c) Company Developments

Taitai Enterprises Corp. established subject on July 13 1985, its registered capital was

$5,000 thousand. At that time, the company was mainly engaged in manufacturing

telephone equipment. In February 1989, subject increased its capital to $100 million due to business expansion. In May 1991, subject further increased its capital to $300 million and stepped into

wireless telecommunication field. In November 1992, subject began construction work on facilities for the production of

cellular phone.


D&B IMPEX REPORT 7

In June 1994, subject started mass production of cellular phone. In December 1996, subject was awarded the ISO 9002 certification, and in February

1998, it was awarded the ISO 14001 certification. In September 1998, subject increased its capital to $500 million. In July 2000, subject started manufacturing earphone and speaker for cellular phone. In February 2002, subject increased its capital to $600 million.

3) ORGANIZATION STRUCTURE

Principals

SU, HUNG YAN Title President ID No. A123456789 Age 75 Gender Male Education Background Graduated from Graduated School of Long Island University

(USA), majoring in Business Administration Military Service 1954-1956 Joined Subject in 1985 Active in Operations Yes. Responsible for overall management. Working Experience Prior to joining subject, Mr. Su was employed by ABC

Corporation (1957-1985) Concurrently As General Manager of Taitai Enterprise Crop.

YANG, CHING SHENG Title General Manager ID No. F120123568 Age 65 Gender Male Education Background Graduated from National Chiao Tung University, majoring in

Electric Engineering Military Service 1962-1963 Joined Subject in 1985 Active in Operations Yes Working Experience Prior to joining subject, Mr. Yang was employed by Acer Inc.

(1964-1980) Concurrently As Finance Manager of Taitai Enterprise Crop.


D&B IMPEX REPORT 8 4) FINANCIAL STATUS

a) Fiscal Balance Sheet (in $thousand)

As Year End Dec 31 2001 2000 1999

Cash & Deposit 382,937 102,038 693,839 Account & Note Receivables 1,357,559 185,051 159,732 Inventory 1,581,507 341,411 262,552 Prepayment 32,492 78,902 8,187 Other Current Assets 143,610 400,000 0 Total Current Assets 3,498,105 1,107,402 1,124,310

Total Fixed Assets 212,267 159,570 115,876

Other Assets 285,960 111,579 92,520

Total Assets 3,996,332 1,378,551 1,332,706

Short-term Loan 921,306 Account & Note Payable 804,643 296,967 34,517 Provisions 17,499 22,829 0 N/P (Commercial Papers) 304,638 Accrual Expense 27,172 Other Current Liabilities 51,714 41,103 240,226 Total Current Liabilities 2,126,972 360,899 274,743

Long-term Liabilities 121,738 0 74,433

Total Liabilities 2,248,710 360,899 349,176

Capital 600,000 550,000 500,000 Prepaid Capital 338,871 Capital Reserve 538,600 217,652 163,440 Retained Earnings 270,151 250,000 320,000 Shareholders' Equity 1,747,622 1,017,652 983,440

Total Equity & Liabilities 3,996,331 1,378,551 1,332,616


D&B IMPEX REPORT 9

b) Profit & Loss Statement (in $thousand)

2001 2000 1999

Sales 3,247,263 2,531,075 2,016,538 COGS -3,005,219 -2,353,284 -1.791.832 Gross Profit 242,044 177,791 224,706 Operating Expense -99,311 -155,751 -95,650 Operating Profit/Loss 142,733 22,040 129,056 Non-Operating Income 90,092 11,884 287,509 Non-Operating Expenses -45,982 -25,006 -5,638 Profit/Loss Before Tax 186,843 8,918 410,927 Income Tax -20,193 0 0 Profit/Loss After Tax 166,650 8,918 410,927

c) Key Ratios

2001 2000 1999

Solvency Ratio Current Ratio 1.64 3.07 4.09 Quick Ratio 0.90 2.12 3.14 Leverage Ratio Total Debt to Equity 1.29 0.35 0.36 Debt Ratio 0.56 0.26 0.26 Efficient Ratio Collection Period ( days) 150 26 28 Payment Period (days) 96 45 55 Inventory Turnover (days) 189 52 52 Profit Ratio Net Profit Margin % 5.13 0.35 20.38 Return on Equity % 9.54 0.88 41.79 Return on Assets % 4.17 0.65 30.84


D&B IMPEX REPORT 10

d) Financial Analysis

(in thousand) 2001 % Changes 2000 % Changes 1999

Prior Year Prior Year Total Current Assets 3,498,105 215.88% 1,107,402 -1.50% 1,124,310 Total Current Liabilities 2,126,972 489.38% 360,899 31.36% 274,743 Working Capital 1,371,133 83.67% 746,503 -12.13% 849,567 Total Fixed Assets 212,267 33.02% 159,570 37.81% 115,786 Total Assets 3,996,332 189.89% 1,378,551 3.45% 1,332,616 Total Liabilities 2,248,710 523.09% 360,899 3.36% 349,176 Net Worth 1,747,622 71.73% 1,017,652 3.48% 983,440 Sales 3,247,263 28.30% 2,531,075 25.52% 2,016,538 Profit after Tax 166,650 1768.69% 8,918 -97.83% 410,927

5) BANKING INFORMATION

The company maintains relationship(s) with the following bank(s) in Taiwan, including the following:

TAIWAN BUSINESS BANK S. Chia Yi Branch 766, Hsin Min Rd., Chiayi City Banker’s report as at Mar 4 2003: Account Number : 100 Account Type : Check Account Year Account Opened : Jan 1999 Average Deposit Balance : Low 7 Figures Relations with subject : Normal


D&B IMPEX REPORT 11 6) PAYMENT INFORMATION WITH PAYDEX

a) Paydex

This Payment section reflects payment information in D&B’s file as of March 7, 2003.

The Paydex for Sample Reports (Taiwan) Ltd. is 80

This Paydex indicates that payments to suppliers are generally received within terms granted, weighted by TWN dollar amounts.

The Paydex used by Dun & Bradstreet is a computer generated, 1 to 100 dollar-weighted numerical indicator of payment performance as reported to D&B.

Paydex Payment Rating Manner

100 Anticipated 90 Discount 80 Prompt 70 Slow to 15 50 Slow to 30 40 Slow to 60 30 Slow to 90 20 Slow to 120

Industry Paydex based on:

Industry Group Description: MFG RADIO/TV COMMUNICATION EQUIPMENT

No. of Paydex Cases in the Industry Group: 78 Firms

Industry Quartiles Upper 80 (Payments received within terms granted) Median 78 (Payments received within terms granted) Lower 60 (22 days beyond terms)


D&B IMPEX REPORT 12

b) Payment Performance

Interview was conducted with several suppliers of subject to determine its payment habits. The following payment experiences reflect how bills are paid against the terms granted. Several other payment records were retrieved from Dun & Bradstreet’s Dun Trade Database.

Payment Record High Credit

Now Owes

Past Due Term Last

Purchase 02/03 Prompt 50,000,000 50,000,000 0 EOM 30 Days 01/03 01/03 Prompt 15,000,000 0 0 EOM 60 Days 01/03 01/03 Prompt 7,000,000 4,000,000 3,000,000 EOM 90 Days 12/02 01/03 Prompt 200,000 200,000 0 EOM 45 Days 12/02 12/02 Prompt 10,000,000 80,000 0 NET 45 Days 11/02 11/02 Prompt 50,000,000 10,000,000 0 L/C 10/02 11/02 Prompt 4,000,000 4,000,000 0 Open Account 10/02

7) OPERATIONS

a) Business Scope

Subject is mainly engaged in manufacturing of cellular phone and related equipment.

Brands: K-Tech

Subject is a production base for Taitai Enterprise Corp. Its production is conducted based

on orders from its parent company Taitai Enterprise Corp. Purchasing and sales are

centralized by the Taitai Group. It is entitled a local sales rate of 80% for its cellular phone

products and 20% for its pagers.

Subject is an export-oriented company and ranked at 95th biggest manufacturer according

to ‘2001 Taiwna Top 1,000 Manufacturers Listing’ issued by Common Wealth Magazine. In

addition, subject was the 1010th largest company Taiwan in terms of the import & export

volume for year 2001.


D&B IMPEX REPORT 13 b) Purchasing Territory & Terms

Purchasing Territory

Local : 50% International : 50% Local Major Supplier : Apec Inc., T-Rex Co., Ltd., Taipei Int’l Factory Import From : USA (25%), Malaysia (25%) Purchasing Terms Local : Post Dated Check 30-90 days, T/T Overseas : T/T, Partial Advance, L/C 60 days

c) Sales Territory & Terms

Sales Territory ` Local : 30%

International : 70% Export to : USA (50%), Australia (10%), Japan (10%)

Selling Term Local : Post Dated Check 30-60 days. T/T Overseas : T/T, L/C 90 days

Subject’s sales are mainly handled by Taitai Enterprises Corp. and PEI’s Company.


D&B IMPEX REPORT 14

d) Import / Export Volume of Subject in Taiwan within the latest years

Year Import Volume Export Volume Total Volume Ranking

1998 US$35,000,000 US$60,000,000 US$95,000,000 1412

1999 US$42,000,000 US$65,000,000 US$107,000,000 1314

2000 US$43,000,000 US$70,000,000 US$113,000,000 1319

2001 US$40,000,000 US$74,000,000 US$114,000,000 1211

2002 US$36,000,000 US$80,000,000 US$116,000,000 1010

e) Employee Size

Subject employs a total of 350 staff.

8) LOCATION

Subject is located in an Industrial area. Subject owns premises at the above captioned

address 1,250 pings (4,125 sq.m.), used as its office and factory.

Besides, subject has maintained one plant and two branches as shown below.

Plant(s): 633, Wen Hua St., Jui Tang Li, Yang Mei Chen, Taoyuan, Taiwan R.O.C.

Branch (es): 3, Wen Hua 1st Rd., Tainan City, Taiwan R. O.C.

Branch (es): 17, Chung Shan 1st Rd., Kaohsiung, Taiwan R.O.C.


D&B IMPEX REPORT 15 9) RELATED COMPANIES

a) Ultimate Parent

PEI’S COMPANY Duns : 65-757-6518 Address : 10F, 100, Tun Hua S. Rd., Sec. 2,

Taipei City, Taiwan (R.O.C.) Registration No. : 14402341 Started Year : January 10, 1965 Capital : $800,000,000 Line of Business : Manufacturer of computers

b) Parent

TAITAI ENTERPRISES CORP. Duns : 65-100-1000 Address : 12F, 100, Tun Hua S. Rd., Sec. 2,

Taipei City, Taiwan (R.O.C.) Registration No. : 50500000 Started Year : June 27, 1968 Capital : $1,000,000,000

Owns 55% of subject Line of Business : Manufacturer of computers and peripheral equipment

c) Subsidiaries

Company Establish Year Line of Business TECPOINT TAIWAN LTD. May 6 1990 Manufacturer of fax machines EXTRA VALUE CO LTD. October 1 1992 Wholesaler of computer peripherals SAMPLE (MALAYSIA) SDN BHD August 10 1993 Manufacturer of computer peripherals

d) Affiliates

Company Establish Year Line of Business GARMENTS INTERNATIONAL CORP

July 7 1986 Wholesaler of chemical material

ISLAND INDUSTRY CO LTD November 11 1982 Wholesaler of industrial machinery


D&B IMPEX REPORT 16

Glossary of Terms GGlloossssaarryy ooff TTeerrmmss D-U-N-S Number The Data Universal Numbering System (D-U-N-S) is a standard for keeping track of companies all over the world. D-U-N-S number is a unique nine-digit code assigned to each company worldwide. Standard Industrial Classification The Standard Industrial Classification (SIC) system was first developed by the U.S. Government and has been widely adopted as the standard coding system used to define and analyze industry structure. Parent Company A Parent is a business entity with controlling interest in another company through ownership of a majority (more than 50%) of its voting stock. Subsidiary Company A Subsidiary is a corporation with more than 50% or its voting stock owned by another business. Subsidiary records must contain the primary business name, D-U-N-S Number and country of its parent company. Affiliated Company A business with 50% or less voting stock owned by another business is designated as an Affiliated Company

Branch A Branch is a secondary location for which its headquarters has legal responsibility. Typically, a branch is at a separate location. However, a branch can be located together with its headquarters or sister branch, provided they have unique, separate, and distinct operations. Branches often have secondary names of trade styles, but the branch primary business name must be identical to its headquarters’ primary name. L/C (Letter of Credit) An Instrument or document issued by a bank, guaranteeing the payment of a customer’s drafts up to a stated amount for a specified period. It substitutes the bank’s credit for the buyer’s and eliminates the seller’s risk. It is used extensively in international trade. D/A (Document against Acceptance) Instructions by an exporter to a bank that the documents attached to the draft for collection are deliverable to the drawee only against his or her acceptance of the draft. D/P (Document against Payment) Instructions by an exporter to a bank that the documents attached to the draft for collection are deliverable only after his or her payment of the draft.


D&B IMPEX REPORT 16 Solvency Ratio Current Ratio = Total Current Assets Total Current Liability Measures the margin of safety present to cover any possible reduction of current assets. Quick Ratio = Total Curr.-Assets - Inventory Total Current Liability Shows the amount of liquid assets (convertible into cash within 30 days) available to cover each dollar of current debt. Leverage Ratio Total Debt to Equity Ratio = Total Liability Total Equity Compares the company’s total indebtedness to the venture capital invested by the proprietors. A higher debt level indicates greater credit risk. Debt Ratio = Total Liability Total Assets Reflects the ratio of liability to total assets. Generally, a small ratio is desired. Efficient Ratio Collection Period = A/C Receivables * 360 Sales Reflects the average number of days to collect from trade debtors.

Inventory Turnover = Total Cost of Sales Inventory Determine the rate at which merchandise is being moved and the effect of the flow of funds into a business. Assets Turnover = Total Assets Sales This ratio ties in sales and the total investment in assets that is used to generate those sales. Sales to Employee = Sales Number of Employee Indicates the contribution from each employee to the company’s revenue. Profit Ratio Net Profit Margin = Net Profit Sales Reveals profits earned per dollar of sales and measures the efficient of operations. Return on Equity = Net Profit Net Worth Analyzes the ability of the firm’s management to realize an adequate return on capital. Return on Assets = Net Profit Total Assets This is the key indicator of profitability for a firm. It matches net profits with the assets available to earn returns.

THIS REPORT MAY NOT BE REPRODUCEThis report, furnished pursuant to contact for the exclusive contains information compiled form sources which Dun & Brbe verified. Dun & Bradstreet International (Shanghai) Ltd. iinformation provided \, and shall not be liable for any loss or

---------- End of the Report ----------

D IN WHOLE OR IN PART IN ANY FORM OF MANNER WHATSOEVER. use of the subscriber as one factor to consider in connection with credit, insurance, marketing or other business decisions, adstreet International (Shanghai) does not control and whose information, unless otherwise indicated in the report, has not n no way assumes any part of the user’s business risk, doe not guarantee the accuracy, completeness, or timeliness of the injury whatever resulting from contingencies beyond its control or from negligence.

D&B IMPEX REPORT 17

Dun & BradstreetInternational Ltd.

We declare to whom it may concern that

is registered in the worldwide database ofunder D-U-N-S® NUMBER

_______________________________

For further information, please access Dun & Bradstreet database or contact us.”The fact that this business is registered in the D&B database should not be construed as suggesting that credit or any other financial or business transaction

should be approved, denied, restricted or delayed. It only signifies that there is sufficient information in the database to assign a DUNS Number."

Dun & Bradstreet International Consultant (Shanghai) Co. Ltd.

China - (8621) 6384-4636 E-mail: [email protected]

Sample Reports (Taiwan) Ltd.

65-625-1469

THIS REPORT MAY NOT BE REPRODUCED IN WHOLE OR IN PART IN ANY FORM OF MANNER WHATSOEVER. This report, furnished pursuant to contact for the exclusive use of the subscriber as one factor to consider in connection with credit, insurance, marketing or other business decisions, contains information compiled form sources which Dun & Bradstreet International (Shanghai) does not control and whose information, unless otherwise indicated in the report, has not be verified. Dun & Bradstreet International (Shanghai) Ltd. in no way assumes any part of the user’s business risk, doe not guarantee the accuracy, completeness, or timeliness of the information provided \, and shall not be liable for any loss or injury whatever resulting from contingencies beyond its control or from negligence.

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