CHINA CREDIT INFORMATION SERVICE, LTD.
INVESTIGATION REPORT
Report Date: Apr. 28, 2008
Case No.：
Subject Number：
Given Name：
Given Address：
Remark：
0804110116
C9830426
CHI AN OPTOELECTRONICS CORP.
No. 1000, Taye Rd., Taichung Science Park, Tashih Township,
Taichung County, Taiwan, R.O.C.
Given address is registered address, actual operating office address.
Basic Information：
CCIS Rating：
CCIS Risk Index：
Name：
■
B+
M1
CHI AN OPTOELECTRONICS CORP.
No. 1000, Taye Rd., Taichung Science Park, Tashih Township,
Registered Address：
Taichung County, Taiwan, R.O.C.
No. 1000, Taye Rd., Taichung Science Park, Tashih Township,
Communication Address：
Taichung County, Taiwan, R.O.C.
URL：
http://www.chichi.com.tw
E-Mail：
lkp70@chichi.com.tw
Tel：
04-2555-8888
Fax：
04/2555-8889
Registration No.：
16161616
Stock Code：
9501
Development Preparatory Office of Central Taiwan ScienceRegistered Authority：
Based Park
Paid-up Capital：
79,861,961 (NT$1,000)
Legal Representative： Wang Hsiang
No. of Employees：
15421 ((Branches are included))
Established：
Aug. 06, 1999
Manufacture (OPTOELECTRONIC MATERIALS,
Business Type：
COMPONENTS & PRODUCTS)
Business Size：
Super Large
Legal Form：
Company limited by shares.
Sales in a steady growth, financial ability need further
Trend：
improvement
1
The information given in this report is furnished by China Credit Information Service, Ltd. In Strict Confidence. Although
the information in this report is obtained from reliable sources, it is in no manner guaranteed. In accepting this report the
inquirer agrees to hold it in Strict Confidence for his own exclusive use and accept personal responsibility for any damage
arising from a violation of communicating such information as contained in this report.
■
Credit Scoring：
Grade
Credit Factor
Item
Standard
Grade
average of
the industry
Administration
Finance
Operation &
Circumstances
Organizational Background & Management
1~20
18
17
Facilities & Business Performance
1~25
20
19
Safe Ratio (Financial and Solvency Status)
1~15
9
9
Capital Turnover
1~10
5
5
Profitability
1~10
2
3
Current Situation
1~10
7
6
Contact transaction
1~5
4
3
Prospect
1~5
4
3
100
69
65
Total
Note: The average score depends on what industry subject is in and what pattern subject is.
FACTORY OR BRANCH OFFICE：
LCD factory I & Actual operation office
No. 1, Taye Rd., Taichung Science Based Industrial Park, Tashih Township,
Address：
Taichung County, Taiwan, R.O.C.
Reg. No.： 98000020
Tel：
04-2555-8888
Fax：
04-2555-8889
■
LCD factory II
No. 2, Sec. 29, Huansi Rd., Taichung Science Based Industrial Park, Tashih
Address：
Township, Taichung County, Taiwan, R.O.C.
Reg. No.： 98000021
Tel：
04-2555-1889
LCD factory III (5th-generation and 5.5th-generation factory)
No. 2-1, Sec. 29, Huansi Rd., Taichung Science Based Industrial Park, Tashih
Address：
Township, Taichung County, Taiwan, R.O.C.
Reg. No.： 98000022
Tel：
04-2555-1890
2
The information given in this report is furnished by China Credit Information Service, Ltd. In Strict Confidence. Although
the information in this report is obtained from reliable sources, it is in no manner guaranteed. In accepting this report the
inquirer agrees to hold it in Strict Confidence for his own exclusive use and accept personal responsibility for any damage
arising from a violation of communicating such information as contained in this report.
LCD factory IV
No. 3, Sec. 9, Huansi Rd., Taichung Science Based Industrial Park, Tashih
Address：
Township, Taichung County, Taiwan, R.O.C.
Reg. No.： 98000023
Tel：
04-2555-1891
LCM general module factory
No. 112, Nanke 6th Rd., Taichung Science Based Industrial Park, Tashih
Address：
Township, Taichung County, Taiwan, R.O.C.
Reg. No.： 98000024
Tel：
04-2555-1880
Taipei sales office
1F, No. 1600, Sec. 8, Nanjing E. Rd., Songshan District, Taipei City, Taiwan,
Address：
R.O.C.
Tel：
02-2555-7777
Fax：
02-2555-9999
Japanese branch
2F BLDG Minamibosi Hatijyusyu Gohyaku Gou 2ban 2tyoume Hatijyusyu
Address：
Tyuuouku Tokyoutonishon
Tel：
81-3-5555-5555
Fax：
81-3-5555-7777
MAJOR AFFILIATE(S)：
NAME：
Chi Chi Technologies, Inc.
Reg. No：
＊16131613
Person-in charge：
Wu, Yi-Chang
Major business activities： Manufacture and sales of LCD driver ICs.
■
NAME：
Reg. No：
Person-in charge：
Chi Chi Communicaiton Systems, Inc.
12781278
Wu, Yi-Chang
Design, manufacturing & sales of wireless communication
Major business activities：
modules; cell phones OEM/ODM services.
NAME：
Chi Chi Investment Corp.
Reg. No：
＊ 27836666
Person-in charge：
Yang Yang
Major business activities： General investment
3
The information given in this report is furnished by China Credit Information Service, Ltd. In Strict Confidence. Although
the information in this report is obtained from reliable sources, it is in no manner guaranteed. In accepting this report the
inquirer agrees to hold it in Strict Confidence for his own exclusive use and accept personal responsibility for any damage
arising from a violation of communicating such information as contained in this report.
NAME：
Chi Chi Logistics Inc.
Reg. No：
＊ 28074766
Person-in charge：
Ling Jung
Major business activities： Storage service
MAJOR AFFILIATE(S) In China：
NAME：
Ninpo Chi Chi Storage Corp.
Person-in charge：
Yang Yang
Major business activities： Storage service
■
NAME：
Ninpo Chi Chi Electronics Corp.
Person-in charge：
Yang Yang
Major business activities： Assembly and sales of TFT-LCD module
MAJOR AFFILIATE(S) OVERSEA：
NAME：
Onternational Display Technology Ltd.
Person-in charge：
Yang Yang
Major business activities： Sales of LCD products
■
NAME：
Person-in charge：
Major business activities：
Chi Chi Optoelectronics Europe B.V.
Yang Yang
Electronic parts and computer monitors afterservice and sales
NAME：
Major business activities：
Chi Chi Optoelectronics (Singapore) Pte., Ltd.
Electronic parts quality control, design and afterservice
NAME：
Major business activities：
LEADTEK GLOBAL GROUP LIMITED
Trading business
Note：＊The information of affiliated company of subject is recorded in the consolidated financial statement of
subject.
HISTORY：
Originally established as Chi Hua Optoelectronics Corp., on Aug. 1999
Subject came to Chi Yi Electronic Industrial Co., Ltd., and subject was the existing
company, then changed its name to the present name. and formed on Apr. 15, 2000.
■
BUSINESS ACTIVITIES AT PRESENT：
Manufacture and sales of TFT-LCD (Thin Film Transistor Liquid Crystal Display) panels and
color filters.
■
4
The information given in this report is furnished by China Credit Information Service, Ltd. In Strict Confidence. Although
the information in this report is obtained from reliable sources, it is in no manner guaranteed. In accepting this report the
inquirer agrees to hold it in Strict Confidence for his own exclusive use and accept personal responsibility for any damage
arising from a violation of communicating such information as contained in this report.
VARIATION OF CAPITAL：(NT$1,000)
The registered capital was 3,000,000, and the paid-up capital was 750,000 in Aug. 06,
1999.
Source: Established with a registered capital of.
The registered capital was 37,500,000, and the paid-up capital was 33,722,343 in Nov.
2003.
Source: Capital increased to.
The registered capital was 50,000,000, and the paid-up capital was 38,966,009 in Nov.
2004.
Source: Capital increased to.
The registered capital was 75,000,000, and the paid-up capital was 59,829,780 in Jun.
2005.
Source: Capital increased to.
The registered capital was 75,000,000, and the paid-up capital was 66,826,253 in Sep.
2005.
Source: Capital increased to.
The registered capital was 75,000,000, and the paid-up capital was 66,998,970 in Dec.
2005.
Source: Capital increased to.
The registered capital was 75,000,000, and the paid-up capital was 70,498,970 in Jun.
2006.
Source: Capital increased to.
The registered capital was 86,000,000, and the paid-up capital was 73,593,831 in Aug.
2006.
Source: Capital increased to.
The registered capital was 86,000,000, and the paid-up capital was 80,643,831 in Dec.
2006.
Source: Capital increased to.
The registered capital was 86,000,000, and the paid-up capital was 79,861,961 in Mar.
2007.
Source: Capital decreased (claiming pawned type A preferred share) to.
The registered capital was 92,000,000, and the paid-up capital was 82,872,399 in Aug.
2007.
Source: Capital increased to.
■
■
SHAREHOLDERS STRUCTURE： A Stock-Listed Enterprise
STOCK EXCHANGE CONDITION： normal
STOCK CODE：9501
5
The information given in this report is furnished by China Credit Information Service, Ltd. In Strict Confidence. Although
the information in this report is obtained from reliable sources, it is in no manner guaranteed. In accepting this report the
inquirer agrees to hold it in Strict Confidence for his own exclusive use and accept personal responsibility for any damage
arising from a violation of communicating such information as contained in this report.
Securities Trading Info：
Year-End Closing Price： 45.50 (2007)
Session High Price - Session Low Price：69.85 - 20.55 (2007)
Month-End Closing Price： 40.05 (2008/06)
Session High Price - Session Low Price： 52.00 - 44.10 (2008/06)
■
■
MAJOR SHAREHOLDERS：
Shares
Percentage Encumbered
Remark
(NT$1,000) of Total Shares Ratio
Legal representative of Chi Chi Technologies Inc.
Wang Hsiang
Chairman
4,901,266
6.14
Ku Lung-Shih
Director
Wang Wen-Hua Director
29,687
0.04
Yang Yang
Director
17,970
0.02
Legal representative of Chi Chi Investment Corp.
Wang Chang
Supervisor
29,485
0.04
Wu Yung-Yung
Supervisor
36,300
0.05
Chen Yung
Independent director
16,255
0.02
Wang Hua-Sheng Independent director
Hsu, Wan-Hsiang Independent supervisor
Name
Position
MANAGEMENT：
● Founder：Wang Hsiang leading the Chi Chi group to establish
Chairman Name：
Mr. Wang Hsiang
Birthday：
Dec. 29, 1938
Birth Place：
Yuen Lin Hsien, Taiwan Province
Graduate of National Chia Yi Vocational High School of
Academic Qualifications：
Commerce
(Years of) Working
10 years; Vice general manager and vice president of Chi
Experience(s)：
Chi Technologies, Inc.
Relationship with founder：
Legal representative
Participates in operation：
Yes
■ Other Incumbent Position(s)：
Name of Organization Position
Main Business Activities
Tai Mei Corp.
Chairman
Manufacture and sales of ABS, PS and acrylics.
●
6
The information given in this report is furnished by China Credit Information Service, Ltd. In Strict Confidence. Although
the information in this report is obtained from reliable sources, it is in no manner guaranteed. In accepting this report the
inquirer agrees to hold it in Strict Confidence for his own exclusive use and accept personal responsibility for any damage
arising from a violation of communicating such information as contained in this report.
General manager Name：
Birthday：
Birth Place：
Academic Qualifications：
(Years of) Working
Experience(s)：
Relationship with founder：
Participates in operation：
Mr. Yang Yang
Apr. 30, 1940
Tainan Hsien, Taiwan Province
Graduate of Chemical Engineering Dept. of National Cheng
Kung University
10 years; Senior manager & Vice Executive Officer of
Production Division of Tai Mei Corp.
Codre of management
Yes
Other Incumbent Position(s)：
Name of Organization Position Main Business Activities
Chi Mei Corp.
Director
Manufacture and sales of ABS, PS and acrylics.
■
Note：The above management information is provided by Chen Shih-Hsien (Head of a division)
■
PREMISES：
LCD factory I & Actual
operation office
Land： 36,000 ㎡
Rented
Building： 29,089 ㎡
According to investigation, at the operating address:
There are 4 records of building numbers, which is 00890000,
Hsin-Ke Section; under subject's name.
There is 1 record of registration of supplementary rights.
LCD factory II
Land： 264,000 ㎡
Rented
The 5th-generation factory
Land： 264,000 ㎡
and 5.5th-generation factory
Rented
Note：Property right information above is provided by local land administration authority/Mr. Chen Shih-Hsien
(Head of a division). This is for reference only.
1. Information above excludes building without the first registration of building's ownership.
2. Enquiry date: Apr. 20, 2008
There are many records of building numbers at subject’s operating address, and only one of them is provided
here for reference.
7
The information given in this report is furnished by China Credit Information Service, Ltd. In Strict Confidence. Although
the information in this report is obtained from reliable sources, it is in no manner guaranteed. In accepting this report the
inquirer agrees to hold it in Strict Confidence for his own exclusive use and accept personal responsibility for any damage
arising from a violation of communicating such information as contained in this report.
MAJOR PRODUCTION FACILITIES：
Item：Color filter sites (5th-generation)
Unit：2 Line
Item：The 3.5 generation production line
Unit：1 Line
Item：The 4 generation production line
Unit：1 Line
Item：The 5 generation production line
Unit：1 Line
Item：The 5.5 generation production line
Unit： 2 Line
Item：The 7.5 generation production line
Unit：1 Line
■
MORTGAGE OF TANGIBLE ASSETS RECORDS：
Subject has been reported no mortgage record on its tangible assets.
■
Note：The above record is based on the public announcements by concerned authorities in Taiwan Province
and Taipei City. It is for reference only.
OPERATING INCOMES 2004 - 2006：(In NT$1,000)
Item\Year
2007
％
2006
％
89,849,588
29.96
56,074,348
29.98
Domestic sales
210,048,905 70.04 130,977,756 70.02
Foreign trade
299,898,493 100.00 187,052,104 100.00
Total
60.33 ％
22.38 ％
Growth(％)
■
2005
％
45,497,508 29.77
107,347,107 70.23
152,844,615 100.00
- ％
OPERATING INCOMES OF 2007 BY PRODUCT：(Unit：NT$1,000)
Main Object
Sales
％
299,088,767
99.73
TFT-LCD display monitors
809,726 0.27
Others
■
■SALES
PERFORMANCE Jan. 2008 ~ Mar.. 2008 ： (Unit：NT$1,000)
75,970,328
TRADE REFERENCES：(Local Suppliers)
Suppliers：
Taiwan Yi Chan Glass Co., Ltd.
Product：
Glass substrate
Paid-up Capital：(NT$1,000) 90,000
Payment Terms：
CHECK 30-60 days 100％
■
8
The information given in this report is furnished by China Credit Information Service, Ltd. In Strict Confidence. Although
the information in this report is obtained from reliable sources, it is in no manner guaranteed. In accepting this report the
inquirer agrees to hold it in Strict Confidence for his own exclusive use and accept personal responsibility for any damage
arising from a violation of communicating such information as contained in this report.
Suppliers：
Chi Yi Co. Ltd.
Product：
Photoresists
Paid-up Capital：(NT$1,000) 12,000
Payment Terms：
CHECK 60-90 days 100％
Suppliers：
Ya Mei Air Liquide Co., Ltd.
Product：
Industrial gas
Paid-up Capital：(NT$1,000) 120,000
Payment Terms：
CHECK 30-45 days 100％
Suppliers：
Chung Hua Technologies Co., Ltd.
Product：
Backlight module
Paid-up Capital：(NT$1,000) 800,000
Payment Terms：
CHECK 60 days 100％
Suppliers：
Taiwan Nini Optical Co., Ltd.
Product：
Polarizer
Paid-up Capital：(NT$1,000) 653,200
Payment Terms：
CHECK 60 days 100％
Suppliers：
Tai Ling Co., Ltd.
Product：
Drive IC
Paid-up Capital：(NT$1,000) 50,000
Payment Terms：
CHECK 30 days 100％
Suppliers：
Taiwan Tunghsia Electronics Co., Ltd.
Product：
Drive IC
Paid-up Capital：(NT$1,000) 150,000
Payment Terms：
CHECK 30 days 100％
TRADE REFERENCES：(Overseas Suppliers)
Product
Area
Liquid crystals (from merck, nichimen), lcd driver ics (from hitachi), polarizers &
Japan
backlight modules (from inabbata)
■
Payment Terms：L/C 100％.
TRADE REFERENCES：(Local Customers)
Customers：
Kuang Wei Kuang Computer Co., Ltd.
Product：
TFT-LCD panels & displayer
Paid-up Capital：(NT$1,000) 900,000
Payment Terms：
CHECK 30-45 days 100％
■
9
The information given in this report is furnished by China Credit Information Service, Ltd. In Strict Confidence. Although
the information in this report is obtained from reliable sources, it is in no manner guaranteed. In accepting this report the
inquirer agrees to hold it in Strict Confidence for his own exclusive use and accept personal responsibility for any damage
arising from a violation of communicating such information as contained in this report.
Customers：
Yi Chao Technology Co., Ltd.
Product：
TFT-LCD panels & displayer
Paid-up Capital：(NT$1,000) 212,000
Payment Terms：
CHECK 30-69 days 100％
Customers：
Kuan Kuan Electronics Co., Ltd.
Product：
TFT-LCD panels & displayer
Paid-up Capital：(NT$1,000) 520,000
Payment Terms：
CHECK 45-60 days 100％
Customers：
Hua Chi Technology Co., Ltd.
Product：
TFT-LCD panels & displayer
Paid-up Capital：(NT$1,000) 400,000
Payment Terms：
CHECK 30-60 days 100％
Customers：
Wei Ta Computer Co., Ltd.
Product：
TFT-LCD panels & displayer
Paid-up Capital：(NT$1,000) 655,000
Payment Terms：
CHECK 30-90 days 100％
Customers：
Chi Shih Enterprise Co., Ltd.
Product：
TFT-LCD panels & displayer
Paid-up Capital：(NT$1,000) 50,000
Payment Terms：
CHECK 30-60 days 100％
TRADE REFERENCES：(Overseas Customers)
Product
Area
TFT-LCD monitor
U.S.A., Japan, Korea, Mainland China
■
Payment Terms：L/C 100％.
BANKERS：
Bank & Branch：
A/C No：
Opened date：
current balance(NT$1,000)：
Relation：
Tel：
■
Taichung Branch of Chang Hwa Commercial Bank
0300009
Aug. 1999
N/A
Normal
04-2221-2811
10
The information given in this report is furnished by China Credit Information Service, Ltd. In Strict Confidence. Although
the information in this report is obtained from reliable sources, it is in no manner guaranteed. In accepting this report the
inquirer agrees to hold it in Strict Confidence for his own exclusive use and accept personal responsibility for any damage
arising from a violation of communicating such information as contained in this report.
Bank & Branch：
A/C No：
Opened date：
current balance(NT$1,000)：
Relation：
Tel：
■
Tainan Branch of Hua Nan Commercial Bank
9009088
Sep. 1999
N/A
Normal
06-222-2111
PAYMENT RECORD：
Subject has been reported no dishonored banking record.
Subject's chairman has been reported no dishonored banking record.
Subject's general manager has been reported no dishonored banking record.
Note：The above banking record statements are based on the data obtained from the Clearing House as of
Apr. 25, 2008.
■
BIDDING FORBIDDEN RECORD：
Subject has not been listed as a forbidden bidder for government purchases as of the
records since Jan. 01, 2002.
The above statement is based on the announcement by concerned government
authorities. It is for reference only.
■
PUBLIC LITIGATION RECORD：
Subject has reported lawsuit records in the last two years, listed below：
Judgment
File No.
Court Verdict
Pleas.
Plaintiff/defendant
Date
Chung-Su-Tzu No. 910 in
Confirmation of Civil
Jan. 10, 2006
Defendant
2005
creditor's right
pleas.
The above statement is based on the communique obtained from the Judicial Yuan of the
Republic of China.
REGISRTATION OF PATENTS：
Subject has been reported registration of patent on 292 item(s).
■
Note：The above statement is based on the data obtained from the concerned authorities.
11
The information given in this report is furnished by China Credit Information Service, Ltd. In Strict Confidence. Although
the information in this report is obtained from reliable sources, it is in no manner guaranteed. In accepting this report the
inquirer agrees to hold it in Strict Confidence for his own exclusive use and accept personal responsibility for any damage
arising from a violation of communicating such information as contained in this report.
BUSINESS STATUS：
Subject is belonged to Chi Chi Group
Name of core company：Chi Chi Technologies, Inc.
Ranking of total assets of the Group：7
No. of affiliates of the Group：31
Total Assets (NT$1,000,000)： 343,173
Net Profit After Tax (NT$1,000,000)： 13,785
The above record is based on Business Groups in Taiwan by CCIS.
■
■
BUSINESS RANKING：
2007
Annual Sales
Sales Growth
After-Tax (Pre-Tax) Net Income
Return on Sales
Ranking in Concerned Industry
(OPTOELECTRONIC MATERIALS,
COMPONENTS & PRODUCTS)
2006
2005
22
320
37
1,470
20
383
18
491
45
406
30
673
2
3
3
Source：Top 5000: Largest Corporations in Taiwan, and research on Business Groups in Taiwan. China Credit
Information Service.
Remark: We changed the item from ranking of income (loss) before income tax to income (loss) after income tax
since 2004 version.
■
Ranking on the industrial performance
Industrial Code：121400 (OPTOELECTRONIC MATERIALS, COMPONENTS & PRODUCTS)
Actual total number of ranked companies listed in the TOP5000 Corporations in Taiwan： 4,753
Total number of companies engaged in the Manufacturing listed in the TOP5000 Corporations in Taiwan：
2,613
Total number of companies categorized as OPTOELECTRONIC MATERIALS, COMPONENTS &
PRODUCTS out of the total number of companies in the Manufacturing listed in the TOP5000 Corporations in
Taiwan： 184
Subject's business ranking among the OPTOELECTRONIC MATERIALS, COMPONENTS & PRODUCTS
listed in the Top 5000 Corporations in Taiwan： 2
12
The information given in this report is furnished by China Credit Information Service, Ltd. In Strict Confidence. Although
the information in this report is obtained from reliable sources, it is in no manner guaranteed. In accepting this report the
inquirer agrees to hold it in Strict Confidence for his own exclusive use and accept personal responsibility for any damage
arising from a violation of communicating such information as contained in this report.
The highest ranking The lowest ranking
or Maximum value
Contents
or Minimum value Average among the Subject's
among the TOP
among the TOP
TOP 5000
ranking
5000
5000
Corporations
or value in
Corporations in
Corporations in
in Taiwan
Comparison
Taiwan
Taiwan
Ranking of OPTOELECTRONIC
MATERIALS, COMPONENTS &
14
4,883
N/A
20
7
2,693
N/A
10
21,188
7
691
15,421
293,028,061
109,910
8,580,788 299,898,493
82,126,048
20,000
3,466,827 82,872,399
554,125,510
72,125
13,134,819 475,535,150
230,734,304
1,840,898
6,457,387 220,648,025
PRODUCTS Business Corporation
Ranking of OPTOELECTRONIC
MATERIALS, COMPONENTS &
PRODUCTS Business Corporation
categorized in the Manufacturing
Number of employees in an
OPTOELECTRONIC MATERIALS,
COMPONENTS & PRODUCTS
Business Corporation
Net income of an
OPTOELECTRONIC MATERIALS,
COMPONENTS & PRODUCTS
(NT$1000)
Capital Amount of an
OPTOELECTRONIC MATERIALS,
COMPONENTS & PRODUCTS
(NT$1000)
Total Assets of an
OPTOELECTRONIC MATERIALS,
COMPONENTS & PRODUCTS
(NT$1000)
Net Worth of an
OPTOELECTRONIC MATERIALS,
COMPONENTS & PRODUCTS
(NT$1000)
The above information is based on the data from TOP 5000: The Largest Corporations in Taiwan in 2007
published by CCIS.
13
The information given in this report is furnished by China Credit Information Service, Ltd. In Strict Confidence. Although
the information in this report is obtained from reliable sources, it is in no manner guaranteed. In accepting this report the
inquirer agrees to hold it in Strict Confidence for his own exclusive use and accept personal responsibility for any damage
arising from a violation of communicating such information as contained in this report.
■
Importers and Exporters：
2007
Ranking in Export/Import Value
Export Value (USD 1,000,000)
Import Value (USD 1,000,000)
2006
->10
>10
2005
3
3628.43
1716.98
4
2110.48
1901.84
Source：Directory of Outstanding Importers and Exporters in Taiwan, Ministry of Economic Affairs.
FINANCIAL PROFILE FOR YEARS 2004-2002：(NT$1,000)
Financial Index
2007/12/31
2006/12/31
Paid-In Capital
82,872,399
80,643,831
Net Worth
220,648,025
188,282,567
Total Liabilities
254,887,125
224,137,038
Total Assets
475,535,150
412,419,605
■
BUSINESS PERFORMANCE FOR YEARS 2004-2002：(NT$1,000)
Financial Index
2007
2006
Net Sales
299,898,493
187,052,104
Operating Profits
36,150,459
8,113,182
Current Period Profits
36,171,411
3,543,081
2005/12/31
66,998,970
145,123,998
130,940,749
276,064,747
■
2005
152,844,615
10,275,463
8,046,782
Please be noted that the above financial figures are：
base on subject's year 2007,2006,2005 financial statements (CPA audited)
IMPORTANT NEWS FROM THE MEDIA：
Date：Aug. 09, 2006
Title：Chi An plans to build 8G panel factory for new wave of competition
Source：Economic Daily News
■
Date：Aug. 17, 2006
Title：Chi An ranks first in supply of 32-inch panel
Source：Economic Daily News
Date：Sep. 08, 2006
Title：Chi An has settled on Da Hua Park and will build its second 7.5G factory in April.
Source：Economic Daily News
Date：Oct. 02, 2006
Title：Chi An be the first panel company enter LED industry
Source：Commercial Times
14
The information given in this report is furnished by China Credit Information Service, Ltd. In Strict Confidence. Although
the information in this report is obtained from reliable sources, it is in no manner guaranteed. In accepting this report the
inquirer agrees to hold it in Strict Confidence for his own exclusive use and accept personal responsibility for any damage
arising from a violation of communicating such information as contained in this report.
Date：Oct. 09, 2006
Title：Chi An awarded NT$60 billion joint loan
Source：Market Observation Post System
Date：Nov. 18, 2006
Title：Chi An make research in backlight module and the self made ratio will surpass 50%
Source：Economic Daily News
Date：Dec. 29, 2006
Title：The effect of AU OPTRONICS consolidating QUANTA DISPLAY has been proved
that Chi An Optoelectronics will start construction of its two factories earlier in this
month.
Source：Economic Daily News
Date：Mar. 26, 2007
Title：Chi An’s net profit margin of the first quarter may not as good as expectation.
Source：Economic Daily News
Date：Apr. 01, 2008
Title：Chi An’s yield of the first quarter may exceed the one of Samsung and LPL again.
Source：Economic Daily News
GENERAL INFORMATION：
I、Industrial Trend
Industrial Name: TFT-LCD
1.Industry Outlook & Future
Current Status: Poor
Future Prospect: Steady
■
2.Major Factors Affecting the Market:
1. Market demand
2. Inventory increase
3. Fluctuation in exchange rate
4. Increase of capital expenditure
15
The information given in this report is furnished by China Credit Information Service, Ltd. In Strict Confidence. Although
the information in this report is obtained from reliable sources, it is in no manner guaranteed. In accepting this report the
inquirer agrees to hold it in Strict Confidence for his own exclusive use and accept personal responsibility for any damage
arising from a violation of communicating such information as contained in this report.
II、Financial and Solvency Status
Based on subject's financial year of 2007：
FINANCIAL STRUCTURE：
Liability to asset ratio is slightly high, slightly with supports from short-term loans; financial
structure is to be strengthened.
SOLVENCY ABILITY：
The liquidity ratio and quick ratio are relatively low, indicating that its short-term debt-paying
ability is in need of improvement. Interest coverage ratio is 8.21 time(s), showing that its
interest-paying ability is good.
MANAGEMENT EFFICIENCY：
Inventory turnover is normal; receivable collection is normal; whole capital turnover ratio is
0.68 times and its management ability is still to be improved.
PROFITABILITY：
Gross profit is normal but cost and expense management ability is effective; current
profitability is excellent.
Cash Flow：
The cash flow for the current period is a net flow-out of NT$ 5,396,123 thousand, while
operating cash flow is a net flow-in. Therefore the cash flow ratio is 76.51 %, indicating that
its ability to pay short-term liability is good, and the cash reinvestment ratio is 20.59 %,
showing that its ability needed for reinvestment funding is good.
Consolidated financial statements：
Subject’s year consolidated report for 2007 indicates that its liabilities to assets ratio is
55.59%, which is same as than it was before consolidation, and therefore its financial
structure is to be strengthened; current and quick ratio is relatively low and short-term
solvency is in need of improvement; long-term equity investments to total assets ratio is
low , suggesting its transferred-investment transparency is high ;with the net profit margin
of 12.04 ％ , and the profit-making situation is good. The cash flow for the current period is
a net flow-in of NT$ 1,041,504 thousand, and operating cash flow is a netflow-in. Therefore
the cash flow ratio is 72.86 %, indicating that its ability to pay short-term liability is good,
and the cash reinvestment ratio is 20.76 %, showing that its ability needed for reinvestment
funding is good.
III、Current Operation & Prospect
Business Contents：
Subject is engaged in sale and manufacture of super thin film transistor LCD and color filter,
it is one of the leading TFT-LCD manufacturers in the world. The products is divided into
medium small size panel (below 10 inch) in term of size and the large size panel including
NB panel, monitor panel, LCD TV panel and etc. its clients are all the famous international
16
The information given in this report is furnished by China Credit Information Service, Ltd. In Strict Confidence. Although
the information in this report is obtained from reliable sources, it is in no manner guaranteed. In accepting this report the
inquirer agrees to hold it in Strict Confidence for his own exclusive use and accept personal responsibility for any damage
arising from a violation of communicating such information as contained in this report.
appliance and PC makers. Take 2005 as example, most of its products are exported,
accounting 70.23% of its revenue.
Company's Features：
Subject is specialized in wide view low color bias technology, wide view technology, high
contrast technology, color vision improvement technology, motion quality improvement
technology and large size LCD TV technology, besides, to meet the business development,
subject has formed cooperation with ITRI, Japan FUJITSU, DNP, USA IBM in R&D of TFTLCD, in 2005 it was awarded the 13th “outstanding innovation contribution prize” by
economic ministry.
In 2001, subject bought IBM’s third generation product line in Ye Zhou Japan and jointly
founded ODTech with IBM Japan. With the deploy of its new generation product lines in
Taiwan, in consideration of the coordination and management efficiency of long term
production line, subject reached agreement with Sony in Jan 2005 to sell its stake of
ODTech to Sony and the factory will be the second production base of low temperature
multi silicon LCD panel for Sony’s portable 3C products.
In Jan 2006, subject reached a patent exchange authorization agreement with world’s
largest LCD TV company Sharp, being the first panel company that reaches extensive
authorization exchange agreement with Sharp. The authorization exchange range includes
the LCD display technology of both companies covering PC, NB, and LCD TV in various
size and medium small size products. Meanwhile, both parties agreed that they would not
sue each other or their clients for any LCD patent. Moreover, subject announced on Feb 27
that it has signed patent authorization agreement with Thomson Li-censing Inc., who
agreed to authorize subject all the LCD patent technology including the monitor and other
products.
Industrial Dynamics：
Now the 5G factory of subject has had the production capability of 1450, 000 pcs per month
with actual volume of 115,000 pcs. Besides, subject started construction to establish 5.5G
factory in June 2003 with the final goal of production capability reaching 180,000 pcs of
substrate of monthly output. At present, 5.5 G factory is focused on 32' TV panel. As to LCD
of large size, subject has produced the scale of 20.1, 27, 32, and over 40 inch. Because
subject can continue to improve process, quality is affirmed. With the increasingly high
boom in TV panel market, subject made full effort to expand the LCD TV market in 2005. Its
shipment of LCD TV panel reached 5. 5 million units and become one of the top three LCD
TV panel supplier in the world. Its 5.5 G factory expand the capacity in Q4 2005 and the
shipment was consequently increase and reached 90000 pcs per month in Dec. the
increase production of 32 inch mainstream panel further consolidate subject market share
17
The information given in this report is furnished by China Credit Information Service, Ltd. In Strict Confidence. Although
the information in this report is obtained from reliable sources, it is in no manner guaranteed. In accepting this report the
inquirer agrees to hold it in Strict Confidence for his own exclusive use and accept personal responsibility for any damage
arising from a violation of communicating such information as contained in this report.
in LCD TV panel market. Besides, benefited from the demand from LCD TV panel market,
subject’s monthly shipment of TV panel in Dec. 2005 exceeded 700000 pcs, and the
revenue from TV panel covers half of its total sale for the first time and ranked first in the
world. Its annual revenue in 2005 is NT$152.844 billion, an increase of 49.07% over 2004,
the accumulative revenue during Jan and Mar. 2006 is NT$47.264 billion, an increase of
77.01% over the same period 2005.
Prospect：
In aspect of China market network, subject was approved by Investment Commission of
Ministry of Economic Affair for the logistic business in China in April 2005. Subject is going
to invest indirectly on " Ninpo Chi Chi Logistics Inc." as to serve customers of finishing
module section. Besides, to lower cost, subject established Ninpo Chi Chi, and gained 53%
stake of Ni Bo Hua Wu in Q 4 2005, this is subject’s first time to invest in a LCM factory in
China, and currently the factory has begun production and the second factory is in
expansion. In addition to deploy in Ni Bo, subject does not rule out the possibility to set up
second production base out Ni Bo.
Subject aggressively expand its market in LCD TV, in 2005 it set up two factories, on 5 G
factory and one 7.5 G factory, the second 5 G factory is set to begin mass production in Q4
2006, but the schedule is brought forward to Q3 and the main products will be 42 inch and
47 inch products, while the 7.5 G factory will start mass production in middle 2007. to
accelerate its deployment in LCD TV panel, subject will continue its factory expansion in
2006, its sixth next generation panel factory in Kao Shiung will start construction since April
15. with the smooth capacity expansion of 5.5 G factories together with the slight price drop
the demand is effectively stimulated and the market scale is in rise. Based on current
situation, subject ‘s second 5G and 7.5 G factory will complete in 2007, when its total
production capacity will improved. In 2008 subject will challenge the 15 million shipment of
LCD panel, and continue the development of new products toward larger size panel,
therefore its future development is still promising.
Information used to compose this report：up to Apr. 28, 2008
- End of Report IMPORTANT NOTE：
Information herein is believed to be reliable; China Credit Information Service, however, does not warrant its
completeness or accuracy.
legitimate purposes.
The report is furnished in strict confidence for the inquirer's exclusive use for
CCIS is not liable for any loss, damage, or injury caused by negligence or other act or
failure of CCIS in procuring, collecting, and communicating information contained herein.
18
The information given in this report is furnished by China Credit Information Service, Ltd. In Strict Confidence. Although
the information in this report is obtained from reliable sources, it is in no manner guaranteed. In accepting this report the
inquirer agrees to hold it in Strict Confidence for his own exclusive use and accept personal responsibility for any damage
arising from a violation of communicating such information as contained in this report.
Economic Indicator
Economic Indicator
ITEM/YEAR
2005
2006
2007
2008
Economic Growth Rate (%)
4.20
4.90
5.70
4.32
Population (people)
22,770,383 22,876,527 22,958,360 22,973,622
GNP (US$100,000,000)
3,650
3,751
3,948
4,281
GNP Per Capita (US$)
16,113
16,494
17,294
18,693
Inflation (Annual Change of Consumer Price
2.30
0.60
1.80
3.89
Index %)
Unemployment Rate (%)
4.10
3.91
3.91
3.94
Source：Directorate General of Budget, Accounting and Statistics (DGBAS) of Executive
Yuan, Central Bank of China
Note：(a,e,f)Forecast,,(b-d)Feb.
Bounced Check for Not Sufficient Funds
ITEM/YEAR
2005
2006
2007
2008
Number
620,817
727,209
625,228
80,404
Number Percentage (%)
0.40
0.49
0.43
0.36
Amount(NT$1,000,000)
139,687
152,312
143,319
19,508
Amount Percentage (%)
0.58
0.64
0.64
0.57
Source：Directorate General of Budget, Accounting and Statistics (DGBAS) of Executive
Yuan, Central Bank of China
Note：2008/Jan.-Feb.
External Trade
ITEM/YEAR
2005
2006
2007
2008
Export Value (US$1,000,000)
198,432
224,000
246,723
39,802
Export Growth Rate (%)
8.80
12.90
10.10
14.70
Import Value (US$1,000,000)
182,614
202,714
219,347
36,562
Import Growth Rate (%)
8.20
11.00
8.20
19.40
Trade Value (US$1,000,000)
381,046
426,714
466,070
76,364
Trade Value Growth Rate (%)
8.50
11.98
9.15
17.05
Source：Department of Statistics, Ministry of Finance
Note：2008/Jan.-Feb.
19
The information given in this report is furnished by China Credit Information Service, Ltd. In Strict Confidence. Although
the information in this report is obtained from reliable sources, it is in no manner guaranteed. In accepting this report the
inquirer agrees to hold it in Strict Confidence for his own exclusive use and accept personal responsibility for any damage
arising from a violation of communicating such information as contained in this report.
APPENDIX
BUSINESS TYPES (GRADES)
Unit Base: NT$1,000
Business Size
Super Large
Large
Medium
Medium Small
Small
Registered Capital
> 3,000,000
> 500,000
< 3,000,000
> 80,000
< 500,000
> 5,000
< 80,000
< 5,000
Net Sales Value
> 10,000,000
> 1,000,000
< 10,000,000
> 100,000
< 1,000,000
> 10,000
< 100,000
< 10,000
Number of Employees
Manufacturing
Service\Others
> 5,000
> 500
> 1,000
> 150
< 5,000
< 500
> 200
> 50
< 1,000
< 150
> 10
>5
< 200
< 50
< 10
<5
Notes: 1.Manufacturing - the highest within the above three categories (capital, sales, and number of
employees) will be chosen for Grade Selection.
2.Net sales value is the sole criterion in Grade Selection for companies or stores of individual
proprietorship.
SCORE CRITERIA FOR CREDIT RATING
Factor
Management Factors
Financial Factors
Economy Factors
Criterion
Organizational Background/Management Capability
Facilities & Sales
Financial Stability
Turnover Capability
Profitability/Earning Ability
Trade Reference
Current Operation
Future Prospect
Total
Score
45
35
20
100
Notes: 1.A score of 10 will be added or deducted from the Organizational Background category when any
favorable or unfavorable record with the subject or its person-in-charge is identified.
2.No score will be graded for companies:
(1).In business operation for less than one year;
(2).Approved or applying for business dissolution;
(3).Offering information too scanty to merit credit rating.
RATING & CORRESPONDING COMMENT
Score
90~100
80~89
70~79
60~69
50~59
30~49
Rating
Corresponding Comment
AA
Definitely credit worthy. No problem for business transaction.
A
Creditability solid. Good for business transaction under present situation.
B+
Creditability satisfactory. Normal business transaction feasible under present situation.
B
Creditability fair. Business transaction on secured terms recommended.
BCreditability average. Limited assets demand caution on sizable transaction.
C
Creditability unsatisfactory. Careful attention required in any business transaction.
20
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the information in this report is obtained from reliable sources, it is in no manner guaranteed. In accepting this report the
inquirer agrees to hold it in Strict Confidence for his own exclusive use and accept personal responsibility for any damage
arising from a violation of communicating such information as contained in this report.
0~29
C-
Creditability dubious or disagreeable. Business transaction to be avoided.
CCIS RISK INDEX
1.Trade volume can be increased by 25~30%.
2.Credit line can be increased by 25~30%.
L1
3.In case of first transaction, the trade volume and the credit line with the subject can be
25~30% higher than those for average customers.
1.Trade volume can be increased by 20~25%.
2.Credit line can be increased by 20~25%.
LOW L2
3.In case of first transaction, the trade volume and the credit line with the subject can be
20~25% higher than those for average customers.
1.Trade volume can be increased by 15~20%.
2.Credit line can be increased by 15~20%.
L3
3.In case of first transaction, the trade volume and the credit line with the subject can be
15~20% higher than those for average customers.
1.Trade volume can be increased by 10~15%.
2.Credit line can be increased by 10~15%.
M1
3.In case of first transaction, the trade volume and the credit line with the subject can be
10~15% higher than those for average customers.
1.Trade volume can be increased within 10%.
2.Credit line can be increased within 10%.
MEDIUM M2
3.In case of first transaction, the trade volume and the credit line with the subject can be within
10% higher than those for average customers.
1.Suggest to keep the trade volume unchanged.
2.Suggest to keep the credit line unchanged.
M3
3.In case of first transaction, the trade volume and the credit line with the subject should be in
par with those for customers of the same business size.
1.Trade volume should be decreased by 20~30%.
2.Credit line should be decreased by 20~30%.
H1
3.In case of first transaction, the trade volume and credit line with the subject should be 20~30%
lower than those for average customers.
1.Trade volume should be decreased by over 30% and to stop transaction with subject
depending on situations.
HIGH H2
2.Credit line should not be granted.
3.Suggest to change payment method for better protection.
1.Business transaction with subject is not recommended other than payment of cash in
advance.
H3
2.No credit line should be granted.
3.Immediately change of payment method and get back receivables & debts.
NA Credit risk is not clear, caution is needed in doing business with the subject.
21
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the information in this report is obtained from reliable sources, it is in no manner guaranteed. In accepting this report the
inquirer agrees to hold it in Strict Confidence for his own exclusive use and accept personal responsibility for any damage
arising from a violation of communicating such information as contained in this report.