MIRA INFORM REPORT
|
Report Date
: |
4th May
2006 |
IDENTIFICATION
DETAILS
|
Name : |
HISENSE IMP. & EXP. CO., LTD. |
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|
|
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Registered
Office : |
No.17, Donghai
West Road, Qingdao, Shandong Province, 266071 Pr China |
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Date of
Incorporation : |
Sep. 16, 1998 |
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|
|
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Com. Reg.
No.: |
3702001803371 |
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|
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|
Legal Form : |
Limited Liabilities Company |
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Line of
Business : |
Engaged in exporting electronic products from Hisense Group |
RATING & COMMENTS
|
MIRA’s
Rating : |
Ba |
RATING
|
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall
operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
|
Status : |
Satisfactory |
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|
|
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Payment
Behaviour : |
Regular |
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|
|
|
Litigation : |
Clear |
NAME & ADDRESS
HISENSE IMP. & EXP. CO.,
LTD.
NO.17, DONGHAI WEST ROAD, QINGDAO,
SHANDONG PROVINCE, 266071 PR CHINA
TEL: 86 (0) 532-83895188/83896188
FAX: 86
(0) 532-83866700
EXECUTIVE SUMMARY
INCORPORATION DATE : SEP. 16, 1998.
REGISTRATION NO. : 3702001803371
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH : 135
REGISTERED CAPITAL : RMB10,000,000
BUSINESS LINE : INTERNATIONAL TRADE
TURNOVER : RMB 1,959,470,000 (AS OF DEC. 31, 2005)
EQUITIES : RMB –64,150,000 (AS OF DEC. 31, 2005)
PAYMENT : AVERAGE
RECOMM. CREDIT RANGE : UP
TO USD300,000
MARKET
CONDITION : COMPETITIVE
FINANCIAL
CONDITION : fair
OPERATIONAL
TREND : fairLY STABLE
GENERAL
REPUTATION : FAIRLY GOOD
exchange
rate : rmb 8.02= us$1 as-of 2006-04-29
SC was registered as a limited liabilities company at local Administration for Industry
& Commerce (The official body of issuing and renewing business license) on
Sep. 16, 1998.
Company Status: Limited liabilities company This
form of business in PR China is defined as a legal person. Its registered
capital is contributed jointly by at least two shareholders and no more
than fifty. Shareholders bear limited liability to the extent of
shareholding, and the co. is liable for its debts only to extent of its
total assets. The characteristics of this form of co. are as follows: Upon
the establishment of the co., an investment certificate is issued to the
each of shareholders. The
board of directors is comprised of three to thirteen members. The
minimum registered capital for a co. is listed as follows: -Manufacturing
co. : RMB 500,000.00 -Trading
&wholesaling co. : RMB 500,000.00 -Retailing
co. : RMB 300,000.00 -Consultancy
& service co. : RMB 100,000.00 Shareholders
may take their capital contributions in cash or by means of tangible assets
or intangible assets such as industrial property and non-patented
technology. Cash
contributed by all shareholders must account for at least 50% of the
registered capital while contribution by intangible assets must not exceed
20% of the registered capital. Existing
shareholders have pre-exemption right to purchase shares of the co. offered
for sale by the other shareholders and to subscribe for the newly increased
registered capital of the co.
SC’s registered business scope
includes acting as the agent of importing and exporting all kinds of
commodities and technology (Excluding the goods forbidden to be exported by the
government), undertaking Sino-foreign equity joint venture and Sino-foreign Corporation, business of
compensation trade in agreement.
SC is mainly engaged in international
trade.
Ms. Yu Shumin has been chairman of
SC since 1998.
SC owns about 135 staff.
SC is currently operating at the
above stated address, and this address houses its operating office in the commercial
zone of Qingdao. Our checks reveal that SC rents the total premise about 1,200
square meters.
http://www.hisense.com.cn.
It’s the website of its parent. The design is professional and the content is
well organized. At present it is in both Chinese and English versions.
No
significant events or changes were found during our checks with local
Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name % of
shareholding
Qingdao
Hisense Electronics Industry Holding Co., Ltd. 95
Qingdao
Hisense Air-conditioners Co., Ltd. 5
l
Chairman:
Ms. Yu
Shumin in her 50’s with university education. She is currently responsible for
the overall management of SC.
Working Experience(s):
From 1998 to present
Working in SC as chairman.
l
General Manager:
Mr. Liu
Qinghua in his 40’s with university education. He is currently responsible for
the daily management of SC.
Working Experience(s):
From 2000 to present Working in SC as general manager.
SC is mainly engaged in exporting
electronic products from Hisense Group.
SC’s products mainly include: HDTV, mobile phone, air-condition,
etc.
SC sources its products and materials 95% from domestic
market and 5% from international markets. SC sells 95% of its products in foreign
market and sells 5% of its products in domestic market.
The buying terms of SC include: Check, L/C, T/T, and Credit
of 60-90 days. The payment terms of SC include: Check, T/T, and Credit of 60-90
days, according to different customers.
SC’s main suppliers:
================
Qingdao
Hisense Air-conditioners Co., Ltd.
SC is
not known to have subsidiary at present.
Overall payment appraisal :
( ) Excellent ( )
Good (X) Average ( )
Fair (
) Poor ( ) Not yet determined
The appraisal serves as a reference to reveal SC's payments
habits and ability to pay. It is based
on the 3 weighed factors: Trade payment
experience (through current enquiry with SC's suppliers), our delinquent
payment and our debt collection record concerning SC.
Trade
payment experience: A trade enquiry currently
conducted with SC's
supplier(s)
reveal the following:
Supplier
A
Products sold: air-conditioners
Date account opened: 2005
Line of credit: No comment
Terms: 15-30 days
Average monthly sales: No comment
Current balance: No comment
Rating Key : 2
Any Special Comments:
_______________________________________
Payment record keys :
1 = Prompt : Payment made before
the credit period expires
2 = As agreed terms : Payment
made upon due date
3 = Slightly slow but acceptable
: Payment made 5 to 20 days beyond agreed terms
4 = Slow : Payment made 16 to 45
days beyond agreed terms
5 = Poor : Payment made over 45
days beyond agreed terms
6 = No comment : Account is newly opened & record is not yet
established
Note : In some instances, payment
beyond terms can be the result of disputes over merchandise, lost invoices,
disputed accounts & etc.
Delinquent
payment record: None in our database.
Debt collection record: No overdue amount owed by SC was placed to us for
collection within the last 6 years.
CITIC
Industrial Bank Shinan Branch
AC#8182100001554
Relationship:
Normal.
Balance Sheet
Unit: RMB’000
|
|
As of Dec. 31,
2005 |
|
Cash & bank |
90,190 |
|
Accounts payable advance |
0 |
|
Accounts receivable |
1,013,970 |
|
Inventory |
66,660 |
|
Other accounts receivable |
1,550 |
|
Expenses to be apportioned |
0 |
|
Other current assets |
74,260 |
|
|
------------------ |
|
Current assets |
1,246,630 |
|
Fixed assets |
1,060 |
|
Long term investment |
0 |
|
Other assets |
5,180 |
|
|
------------------ |
|
Total assets |
1,252,870 |
|
|
============= |
|
Short loans |
661,960 |
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Accounts payable |
12,510 |
|
Salary payable |
0 |
|
Tax payable |
0 |
|
Account receivable advance |
0 |
|
Other accounts payable |
11,080 |
|
Drawing-expense in advance |
0 |
|
Other current liabilities |
631,470 |
|
|
------------------ |
|
Current liabilities |
1,317,020 |
|
Long term liabilities |
0 |
|
Other liabilities |
0 |
|
|
------------------ |
|
Total liabilities |
1,317,020 |
|
Equities |
-64,150 |
|
|
------------------ |
|
Total liabilities & equities |
1,252,870 |
|
|
============= |
Income Statement
Unit: RMB’000
|
|
As of Dec. 31,
2005 |
|
Turnover |
1,959,470 |
|
Cost of goods sold |
1,917,530 |
|
Sales expense |
44,820 |
|
Management
expense |
11,440 |
|
Finance
expense |
39,910 |
|
Profit before tax |
-43,110 |
|
Less profit tax |
0 |
|
Net profits |
-43,110 |
Important Ratios
=============
|
|
As of Dec. 31, 2005 |
|
*Current ratio |
0.95 |
|
*Quick ratio |
0.90 |
|
*Liabilities to assets |
1.05 |
|
*Net profit margin (%) |
-2.20 |
|
*Return on total assets (%) |
-3.44 |
|
*Fixed assets/Total assets |
0 |
|
*Inventory /Turnover ×365 |
12days |
|
*Accounts receivable/Turnover ×365 |
189days |
|
*Turnover/Total assets |
1.56 |
|
* Cost of goods sold/Turnover |
0.98 |
PROFITABILITY: FAIR
l
The turnover of SC appears fairly
good in its line.
l
SC’s net profit margin is fair.
l
SC’s return on total assets
is fair.
l
SC’s cost of goods sold is average,
comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is
maintained in a normal level.
l
SC’s quick ratio is
maintained in a normal level.
l
The inventory of SC is
maintained in an average level.
l
The accounts receivable of SC
appears fairly large.
l
SC’s short-term loan is in a fairly
large.
l
SC’s turnover is in a normal
level, comparing with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is too high.
l
The risk for SC to go
bankrupt is low at present.
Overall financial condition of the SC: Fair.
SC is
considered a medium-sized company in its line with fairly good background. A
credit line up to USD300,000 would appear to be with in SC’s capacity.
RATING
EXPLANATIONS
RATING
|
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses
an extremely sound financial base with the strongest capability for timely
payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses
adequate working capital. No caution needed for credit transaction. It has
above average (strong) capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial
& operational base are regarded healthy. General unfavourable factors
will not cause fatal effect. Satisfactory capability for payment of interest
and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall
operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable
& favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
Small |
|
11-25 |
Ca |
Adverse
factors are apparent. Repayment of interest and principal sums in default or
expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit
risk exists. Caution needed to be exercised |
Credit not
recommended |