MIRA
INFORM REPORT
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Report Date : |
29th
January, 2007 |
IDENTIFICATION
DETAILS
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Name : |
SHENZHEN
GONGJIN ELECTRONICS CO., LTD. |
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Registered Office : |
2f, New Energy Building, Nanyou Road, Nanshan District,
Shenzhen, Guangdong Province, 518054 Pr China |
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Country : |
China |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
24.11.1998 |
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Com. Reg. No.: |
4403012011338 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged
in development and selling set- top box, U disk, and ADSL products. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD
200,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually
Correct |
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Litigation : |
Clear |
Company Name & Address
SHENZHEN GONGJIN ELECTRONICS CO., LTD.
2F, NEW energy building, nanyou road,
nanshan district, shenzhen, GUANGDONG PROVINCE, 518054 PR CHINA
TEL :
86 (0) 755-26062507
FAX :
86 (0) 755-26645696
EXECUTIVE SUMMARY
INCORPORATION DATE :
Nov. 24, 1998
REGISTRATION NO. :
4403012011338
REGISTERED
LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
50
REGISTERED CAPITAL :
CNY 30,000,000
BUSINESS LINE :
SELLING
TURNOVER :
CNY 338,985,000 (AS OF DEC. 31, 2005)
EQUITIES :
CNY 38,990,000 (AS OF DEC. 31, 2005)
PAYMENT : AVERAGE
RECOMM.
CREDIT RANGE : UP TO USD 200,000
(PERIODICAL REVIEW)
MARKET
CONDITION : COMPETITIVE
FINANCIAL
CONDITION : FAIRLY STABLE
OPERATIONAL
TREND : FAIRLY STEADY
GENERAL
REPUTATION : AVERAGE
EXCHANGE
RATE : CNY 7.78 =US1$
AS OF 2007-1-29
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Renminbi
SC was
registered as a limited liabilities company at local Administration for
Industry & Commerce (AIC - The official body of issuing and renewing
business license) on Nov. 24, 1998.
Company Status: Limited liabilities co. This form of
business in PR China is defined as a legal person. 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. : CNY 500,000.00 -trading
&wholesaling co. : CNY 500,000.00 -retailing co. : CNY 300,000.00 -consultancy &
service co. : CNY 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 technology developing and selling of broad-band communication
equipment, computer-TV box, set-top box, computer boards and cards (excluding
manufacture. Manufacture license need to be reported for authorization);
purchasing and selling hardware and software, electronic products (excluding
the products privileged, prohibited, and franchised); import and export
business. (Follow the official document No. 2001-063)
SC is mainly engaged in
development and selling set- top box, U disk, and ADSL products.
Ms. Wang Danhua has been chairman
of SC since 2001.
SC owns approximately 50 staff at
present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the industrial zone of Shenzhen. Our checks reveal that SC
owns the total premise about 1,400 square meters.
http://www.twsz.com This website belongs to SC’s
parent company - Shenzhen T&W Electronics Co., Ltd. The design is
professional and the content is well organized. At present it is in both
Chinese and English versions.
Shenzhen T&W Electronics, established in
1991, is one professional developer and provider of broadband terminal
equipment and digital video products in China. Its headquarter also locate at 2F, New Energy
Building, Nanyou Road, Nanshan District,
Shenzhen, Guangdong Province. It consists of
T&W Electronics (Hong Kong) Co., Ltd., T&W Electronics (Shenzhen) Co.,
Ltd. and Shenzhen Gongjin Electronics Co., Ltd.
Changes
of its registered information:
|
Date
of change |
Item |
Before
the change |
After
the change |
|
2001-1-19 |
Registered
capital |
CNY
1,000,000 |
CNY
8,520,000 |
|
Shareholder
and shareholding |
Cui
Zhengnan崔正南 (CNY 500,000) Wang Danhua王丹华(CNY
500,000) |
Cui
Zhengnan崔正南(CNY 500,000) Tang
Fonan唐佛南(CNY 5,020,000) Wang
Dawei汪大维(CNY2,500,000) Wang
Danhua王丹华(CNY 500,000) |
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|
2001-9-6 |
Registered
capital |
CNY
8,520,000 |
CNY
23,600,000 |
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Shareholder
and share holding |
Cui
Zhengnan崔正南(CNY 500,000) Tang
Fonan唐佛南(CNY 5,020,000) Wang
Dawei汪大维(CNY2,500,000) Wang
Danhua王丹华(CNY 500,000) |
Cui
Zhengnan崔正南(CNY 500,000) Tang
Fonan唐佛南(CNY 10,520,000) Wang
Dawei汪大维(CNY 12,080,000) Wang
Danhua王丹华(CNY 500,000) |
|
|
2006-1-6 |
Registered
capital |
CNY 23,600,000 |
CNY
30,000,000 |
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Shareholder
and share holding |
Cui
Zhengnan崔正南(CNY 500,000) Tang
Fonan唐佛南(CNY 10,520,000) Wang
Dawei汪大维(CNY 12,080,000) Wang
Danhua王丹华(CNY 500,000) |
Cui
Zhengnan崔正南(CNY 500,000) Tang
Fonan唐佛南(CNY 13,720,000) Wang
Dawei汪大维(CNY 15,280,000) Wang
Danhua王丹华(CNY 500,000) |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Cui
Zhengnan 2
Tang
Fonan 46
Wang
Dawei 51
Wang Danhua 2
l
Chairman:
Ms. Wang
Danhua, born in 1949, with technical secondary
education. She is currently responsible for the overall management of SC.
Working Experience(s):
From 2001 to present Working
in SC as chairman.
l
General Manager:
Mr. Cui
Zhengnan, in his 40’s with university education. He
is currently responsible for the daily
management of SC.
Working Experience(s):
From 2001 to present Working
in SC as general manager.
SC is mainly engaged in
development and selling set- top box, U disk, and ADSL products.
SC’s
products mainly include: set-top box, U disk and ADSL products.
SC sources its materials 100% from domestic
market, mainly from Shenzhen. SC sells 80% of its products in domestic market,
and 20% to the overseas market, mainly to Southeast Asian market and Europe.
The buying terms of SC include Check, T/T and Credit of 30-60
days. The payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
*Major
Supplier:
=============
Shenzhen
T & W Electronic Co., Ltd.
SC is known to have the
following branches:
Ø Shenzhen Gongjin
Electronics Co., Ltd, Jiangsu Branch
Ø Shenzhen Gongjin
Electronics Co., Ltd, Wuhan Branch
Ø Shenzhen Gongjin
Electronics Co., Ltd, Xi’an Branch
Ø Shenzhen Gongjin
Electronics Co., Ltd, Liaoning Branch
Ø Shenzhen Gongjin
Electronics Co., Ltd, Chengdu Branch
Ø Shenzhen Gongjin
Electronics Co., Ltd, Changsha Branch
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 : SC refused to release any
information of its suppliers and the trade reference was not available.
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.
SC’s management
declined to release its bank details.
Balance Sheet
Unit: CNY’000
|
|
As of Dec. 31,
2004 |
As of Dec. 31,
2005 |
|
Cash & bank |
21,429 |
37,700 |
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Bills receivable |
2,112 |
14,700 |
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Inventory |
42,614 |
63,981 |
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Accounts receivable |
92,223 |
58,274 |
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Other receivables |
29,374 |
17,486 |
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Other current assets |
0 |
13 |
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------------------ |
------------------ |
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Current assets |
187,752 |
192,154 |
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Fixed assets |
20,587 |
29,013 |
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Fixed assets net value |
11,493 |
17,566 |
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Projects under construction |
0 |
0 |
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Long term investment |
0 |
0 |
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Other assets |
70 |
60 |
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------------------ |
------------------ |
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Total assets |
199,315 |
209,780 |
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============= |
============= |
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Short loans |
47,000 |
44,000 |
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Bills payable |
22,823 |
17,002 |
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Accounts payable |
63,553 |
86,900 |
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Accounts receivable advance |
2,767 |
7,498 |
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Welfare payable |
590 |
1,403 |
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Tax payable |
546 |
1,116 |
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Other payable |
27,154 |
12,868 |
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Other current liabilities |
0 |
0 |
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------------------ |
------------------ |
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Current liabilities |
164,433 |
170,787 |
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Long term liabilities |
112 |
3 |
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------------------ |
------------------ |
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Total liabilities |
164,545 |
170,790 |
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Equities |
34,770 |
38,990 |
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------------------ |
------------------ |
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Total liabilities &
equities |
199,315 |
209,780 |
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============= |
============= |
Income Statement
Unit: CNY’000
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As of Dec. 31, 2004 |
As of Dec. 31, 2005 |
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Turnover |
414,313 |
338,985 |
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Cost of goods sold |
384,299 |
314,479 |
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Sales expense |
6,476 |
3,839 |
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Management expense |
14,788 |
9,084 |
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Finance expense |
3,586 |
6,055 |
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Profit before tax |
4,881 |
5,408 |
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Less: profit tax |
366 |
415 |
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Profits |
4,515 |
4,993 |
Important Ratios
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As
of Dec. 31, 2004 |
As
of Dec. 31, 2005 |
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*Current ratio |
1.14 |
1.13 |
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*Quick ratio |
0.88 |
0.75 |
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*Liabilities
to assets |
0.83 |
0.81 |
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*Net profit
margin (%) |
1.09 |
1.47 |
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*Return on
total assets (%) |
2.27 |
2.38 |
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*Fixed
assets/Total assets |
0.10 |
0.14 |
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*Inventory
/Turnover ×365 |
38days |
69days |
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*Accounts
receivable/Turnover ×365 |
81days |
63days |
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*Turnover/Total
assets |
2.08 |
1.62 |
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* Cost of
goods sold/Turnover |
0.93 |
0.93 |
PROFITABILITY: AVERAGE
l
The
turnover of SC appears fairly good in this line.
l
SC’s
net profit margin is average.
l
SC’s
return on total assets is average.
l
SC’s
cost of goods sold is fairly high, comparing with its turnover.
LIQUIDITY: FAIR
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 appears LARGE.
l
The
accounts receivable of SC appears LARGE.
l
SC’s
short-term loan is appears LARGE, and its accounts payable appears TOO 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 fairly high.
l
The
risk for SC to go bankrupt is average.
Overall financial condition of the SC:
Fairly stable.
SC is
considered small-sized in its line with fairly stable financial conditions. A
credit line up to USD 200,000 appears to be within SC’s capacities upon a
periodical review basis.
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
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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 |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |
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NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
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