MIRA
INFORM REPORT
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Report Date : |
01.02.2008 |
IDENTIFICATION
DETAILS
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Name : |
GUANGDONG GENUIN ELECTRIC Co., Ltd. |
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Registered Office : |
Genghe Town, Gaoming Cangjiang Industry
Zone,Foshan, Guangdong Province, 528522 |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
30.06.1995 |
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Com. Reg. No.: |
001424 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
Researching, Manufacturing and Selling Various Ventilators, and Other
Electric Appliances |
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 400,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address of the company
GUANGDONG GENUIN ELECTRIC Co., Ltd.
GENGHE TOWN,
GAOMING CANGJIANG INDUSTRY ZONE,
FOSHAN, GUANGDONG
PROVINCE, 528522 PR CHINA.
TEL: 86 (0) 757- 88848638 FAX:
86 (0) 755- 88846230
EXECUTIVE SUMMARY
INCORPORATION DATE : JUNE 30, 1995
REGISTRATION NO. : 001424
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY
JOINT VENTURE ENTERPRISE
STAFF STRENGTH :
1,000
REGISTERED CAPITAL : USD 8,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 117,432,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 73,731,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 400,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : well-known
EXCHANGE RATE :
CNY
7.1844 = US1$
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
NY - China Yuan Renminbi
SC was registered as a Chinese-foreign equity joint venture enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on June 30, 1995.
Company Status: Chinese-foreign equity joint venture
enterprise This form of business in PR
China is defined as a legal person. It is a limited co. jointly invested by
one or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of
capital investment. The investing parties exercise business management,
share profits and bear all risks and liabilities of the co. together. The
equity joint venture law requires that foreign party contribute not less
than 25% of the registered capital, with no maximum. The investing parties
are free to agree on method of profit distribution and liabilities bearing
according to the proportion of capital investment. Each investing parties
contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has a
limited duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition
position in international market may extend beyond the 50 years limit.
SC’s registered
business scope includes manufacturing and selling plastic slot, plastic pipes and
parts, corrugated pipes, electrical engineering products and parts, air
switches, plastic products, plastic machinery, air curtains, air conditioners,
plastic decorative sheets, ventilators, lighting series products and parts,
electromagnetic ovens, electrical coffee pots, electric juice extractors,
vacuum, water dispensers, bath heaters, air purifiers, videodisc, power
amplifiers, acoustics, electronic automatic voltage stabilizers,
intercommunication telephone sets, ventilation cases and parts.
SC is mainly
engaged in researching, manufacturing and selling various ventilators, and
other electric appliances.
Ms. Lin Chaoming
has been legal representative and chairman of SC since July 2005.
SC is known to have approx. 1,000 staff members at present.
SC is
currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Foshan. SC’s accountant
refused to release detailed information of the premise.
http://www.genuin.com/
The design is professional and the content is well organized. At present it is
in Chinese version.
Email: info@genuin.com
SC’s quality system meets the international standard of ISO9001.
Changes of its registered information:
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Date of change |
Item |
Before the change |
After the change |
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2000-03 |
Company Name |
Gaoming Genuin Electric
Co., Ltd. |
Guangdong Genuin
Electric Co., Ltd. |
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2001-08 |
Legal representative |
Qiu Lijuan |
Lin Weixiong |
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Main Shareholders |
Gaoming Genuin
Electric Industry Co., Ltd. Gaoming Goody Plastic Industry Co.,
LtdFelton Development Limited |
Gaoming Genuin
Electric Industry Co., Ltd.Guangdong Welsun Group Co. LtFelton Development
Limited |
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2004-03 |
Main Shareholders |
Gaoming Genuin
Electric Industry Co., Ltd.Guangdong Welsun Group Co. LtdFelton Development
Limited |
Guangdong Welsun Group Co. LtdFoshan Gaoming Genuin Electric Industry Co., Ltd. （外方）Felton
Development Limited |
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2005-07 |
Legal representative |
Lin Weixiong |
Lin Chaoming |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Guangdong Welsun Group Co. Ltd 21
Foshan Gaoming Genuim Electric Industry Co., Ltd. 30
Felton Development Limited 49
*Guangdong Welsun Group Co Ltd
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No.13 Huanan Road, Ronggui, Shunde, Foshan,
Guangdong, China 528303
Tel:
(86 757) 26383002 (86 757)
26380200
Fax:
(86 757) 26382985
l
Legal representative and chairman:
Ms. Lin Chaoming She is currently responsible for the overall management
of SC.
Working Experience(s):
From 2005 to present Working
in SC as chairman and legal representative.
SC is mainly engaged
in researching, manufacturing and selling various ventilators, and other
electric appliances.
SC sources its materials 80% from domestic
market, and 20% from overseas market. SC sells 70% of its products in domestic
market, and 30% to overseas market.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
SC is not
known to have any 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 : SC did not
provide any name of trade/service suppliers and we have no other sources to
conduct the enquiry at present.
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 (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
9,522 |
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Inventory |
42,986 |
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Accounts
receivable |
38,263 |
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Advances to
suppliers |
1,662 |
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Other
receivables |
60,879 |
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Prepaid expenses |
1,967 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
155,279 |
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Total fixed
assets |
30,123 |
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Long term investment |
17,860 |
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Intangible and
deferred assets |
5,112 |
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Other assets |
0 |
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Total assets |
208,374 |
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Short loans |
35,259 |
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Accounts payable |
46,253 |
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Advances from
customers |
9,255 |
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Other payable |
41,012 |
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Accrued expenses |
526 |
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Other current
liabilities |
1,338 |
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------------------ |
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Current
liabilities |
133,643 |
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Long term
liabilities |
1,000 |
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Total
liabilities |
134,643 |
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Equities |
73,731 |
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Total
liabilities & equities |
208,374 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
117,432 |
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Cost of goods sold |
109,613 |
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Income from
other operations |
289 |
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Sales expense |
3,812 |
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Management expense |
2,192 |
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Finance expense |
1,362 |
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Non-operating
income |
192 |
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Non-operating expense |
63 |
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Profit before
tax |
872 |
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Less: profit tax |
145 |
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Profits |
727 |
Important Ratios
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as
of Dec. 31, 2006 |
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*Current ratio |
1.16 |
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*Quick ratio |
0.84 |
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*Liabilities
to assets |
0.65 |
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*Net profit
margin (%) |
0.62 |
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*Return on
total assets (%) |
0.35 |
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*Inventory
/Turnover ×365 |
134 days |
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*Accounts
receivable/Turnover ×365 |
119 days |
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*Turnover/Total
assets |
0.56 |
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* Cost of
goods sold/Turnover |
0.93 |
PROFITABILITY:
AVERAGE
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The turnover of SC appears fairly good in its line.
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SC’s net profit margin is average.
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SC’s return on total assets is average.
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SC’s cost of goods sold is fairly high, comparing with its turnover.
LIQUIDITY: AVERAGE
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The current ratio of SC is maintained in a normal level.
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SC’s quick ratio is maintained in a normal level.
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The inventory conversion period of SC appears long.
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The accounts receivable of SC appears fairly large.
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SC’s short-term loan is in an average level.
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SC’s turnover is in a fair level, comparing with the size of its total
assets.
LEVERAGE: AVERAGE
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The debt ratio of SC is average.
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The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
SC is considered a large-sized company in its line with fairly stable financial
condition. A credit line up to USD 400,000 would appear to be within SC’s
capacities.
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 |
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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 |
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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. |
Small |
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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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This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)