MIRA
INFORM REPORT
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Report Date : |
11.01.2008 |
IDENTIFICATION
DETAILS
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Name : |
HUANGSHI DONGBEI
ELECTRICAL APPLIANCE CO., LTD. |
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Registered Office : |
No. 5 Wuhuang Road, Tieshan District, Huangshi, Hubei Province, 435006 |
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Country : |
China |
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Financials (as on) : |
30.06.2007 |
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Date of Incorporation : |
10.03.1999 |
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Com. Reg. No.: |
002678 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing and selling plunger type hermetically sealed
compressors. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
USD 3,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
NAME AND ADDRESS
HUANGSHI DONGBEI ELECTRICAL APPLIANCE CO., LTD.
NO. 5 WUHUANG ROAD, TIESHAN DISTRICT, HUANGSHI,
HUBEI PROVINCE, 435006 PR CHINA
TEL: 86 (0) 714-5431873 FAX:
86 (0) 714-5420558
EXECUTIVE SUMMARY
INCORPORATION DATE : MAR. 10, 1999
REGISTRATION NO. : 002678
REGISTERED LEGAL FORM : SHARES LIMITED COMPANY
STAFF STRENGTH :
2,951
REGISTERED CAPITAL : CNY 235,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
cny 1,088,081,000 (AS OF JUN. 30, 2007)
EQUITIES :
cny 493,388,000 (AS OF JUN. 30, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 3,000,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : WELL KNOWN
EXCHANGE RATE :
CNY 7.39= US$1
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Ren Min Bi
SC was registered as a shares limited company at local Administration for Industry & Commerce (AIC – The official body of issuing and renewing business license) on Mar. 10, 1999.
Company
Status: Shares limited co. This form of business in PR China is defined as a legal
person. Its registered capital is divided into shares of equal par value
and the co. raises capital by issuing share certificates by promotion or by
public offer. Shareholders bear limited liability to the extent of
shareholding, and the co. is liable for its debts only to the extent of its
total assets. The co has independent property of legal person and enjoys
property rights of legal person. The
characteristics of the shares limited co. are as follows: The establishment of the co. requires at least two
promoters and no more than 200, half
of whom shall be domiciled in China.. Natural person are allowed to
serve as promoters. The minimum registered capital of a co. is CNY 5M. while
that of the co. with foreign investment is CNY 5M. The total capital of a
co. which propose to apply for publicly listed must be no less than CNY
30M. The board of directors must consist of five to nineteen
directors. If the co. raises capital by public offer, the promoters
must not subscribe less than 35% of the total shares. the promoters’ shares
are restricted to transfer- within one year of the offer. A state-owned enterprise that is restructured into a
shares limited co. must comply with the conditions & requirements
specified under the law & administrative rule.
SC’s registered
business scope includes manufacturing and selling plunger sealed refrigerating
compressors
SC is mainly
engaged in manufacturing and selling plunger type hermetically sealed
compressors.
Mr. Yang Baichang
(杨百昌) has been chairman of SC since 2005.
SC is known
to have approx. 2,951 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 Huangshi. Our checks reveal that
SC owns the total premise about 140,000 square meters.
http://www.donper.com
. It is the website of its parent company. The design is professional and the
content is well organized. At present it is in both Chinese and English
versions.
SC was listed in the Shanghai Stock Exchange in Jul. 1999 with stock
code of 900956.
SC was ISO9001 certified in 1996, ISO9000: 2000 certified in 2001, and
ISO14000 certified in 2003.
In 2004, SC was awarded prize of UNDP/GEF, and the appraisal of the
State Environmental Protection Administration of China, which drove the
technical progress of the whole compressor industry and improved the integral
level of homemade compressors.
MAIN SHAREHOLDERS: As of Jun. 30,
2007
Name %
of Shareholding
Huangshi Donper M & E Group Co., Ltd. 50.04
Sun Menglin 0.49
Changzhou ZEC Co., Ltd. 0.34
Zhou Jianbai 周坚白 0.30
ABNAMROBANKNV 0.26
SHENYINWANGUONOMINEES (H.K.) LTD 0.19
Guo Qing 郭青 0.19
Ling Yongzhen 0.18
Changshu Tianyin Electromechanical Co., Ltd. 0.17
Zhejiang Lisheng Electric Manufacture Co., Ltd. 0.17
SHAOXING XINGBEI PUNCHING GENERAL CO., LTD. 0.17
Wuhan Xinhua Hardware Co., Ltd. 0.17
Other shareholders: 47.33
Huangshi Donper M & E Group Co., Ltd (Donper Group for short) is a
sizable enterprise specialized in R&D, production and sales of
refrigerating compressor, commercial-use refrigerating machinery, and solar
water heater, etc. In 1994, it formed its group with eight subsidiaries. The
Group is headquartered in Dongfangshan Beauty Spot, Huangshi, Hubei in a land
of 200,000 sq.m., with over 4,800 staff including more than 600 technicians.
In March 1999, Huangshi Donper Refrigerating Machine Group Co., Ltd
reorganized assets of its refrigerating compressor plant and founded Huangshi Dongbei Electrical Appliance Co.,
Ltd. together with other five companies including Wuhan Xinhua Hardware
Co., Ltd. In July 1999, Donper B share got listed in Shanghai Stock Exchange.
On May 20, 2000, Huangshi Dongper Refrigerating Machine Co., Ltd.
founded Huangshi Donper M & E Group Co., Ltd. through debt-to-equity swap.
Donper Group currently has four direct subsidiaries --- Huangshi Dongbei Electrical Appliance Co.,
Ltd. (Listed B share), Donper Refrigeration Co., Ltd., Donper Foundry
Co., Ltd., and Donper Solar Energy Co., Ltd., and four indirect subsidiaries
including Haiguanshan Hotel, Chenxin Photoelectric Co., Ltd., etc. Its leading
products include hermetic compressor, cold drink machine, ice cream machine,
solar water heater, auto casting parts, and ceramic ferrule of optical fiber
connector, etc.
ADD: No. 5, Wuhuang Road, Tieshan District, Huangshi City, Hubei
Province, China.
TEL: 86-0714-5416688
FAX: 86-0714-5415588
WEBSITE: http://www.donper.com
E-Mail: trade@donper.com
l
Chairman:
Mr. Yang Baichang (杨百昌), in his 50’s with
university education. He is currently responsible for the overall management of
SC.
Working Experience(s):
From 2005 to present Working in SC as chairman.
Also working in Huangshi Donper M & E Group Co., Ltd.,
as general manager.
l
General Manager:
Mr. Liu Chuansong (刘传宋), in his 50’s with
university education. He is currently responsible for the daily management of
SC.
Working Experience(s):
From 2005 to present Worked in SC as general manager.
SC is mainly engaged
in manufacturing and selling plunger type hermetically sealed compressors.
SC’s products
mainly include: reciprocating hermetic refrigerating compressor of 1/14HP ~
3HP, which are to produce R134a, R600a, R22/R152a, R22, and R404A to match
refrigerator, ice box, display case, water machine, car fridge, cold drink
machine, and ice cream machine, etc.
SC sources its
materials 80% from domestic market, and 20% from the overseas market, mainly
European countries. SC sells 70% of its products in domestic market, and 30% to
the overseas market, mainly American and European countries.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Client:
============
Huangshi Donper M & E Group Co., Ltd.
Huangshi Donper Refrigeration Co., Ltd.
Changshu Tianyin Electromechanical Co., Ltd.
*Major Supplier:
============
Changzhou ZEC Co., Ltd.
Wuhan Xinhua Hardware Co., Ltd
SC is
known to have 5 subsidiaries as below,
Huangshi
Haiguanshan Hotel Co., Ltd.
Huangshi
Sunshine Opto-electronic CO., LTD.
Huangshi
Donper M & E Group Solar Energy Co., Ltd.
Wuhu
Abaur Mechanical & Electrical Co., Ltd.
Huangshi
Donper Casting Co., Ltd.
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’s suppliers
declined to make any comments.
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 refused to release
any information about its bank.
Consolidated
Balance Sheet
Unit: CNY’000
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As of Jun. 30, 2007 |
As
of Dec. 31, 2006 |
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Cash & bank |
368,949 |
318,242 |
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Accounts
receivable |
351,942 |
274,826 |
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Accounts payable
advance |
121,352 |
88,947 |
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Bills receivable
|
153,443 |
106,077 |
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Other
receivables |
26,727 |
21,975 |
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Inventory |
205,270 |
205,022 |
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Other current
assets |
168 |
0 |
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------------------ |
------------------ |
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Current assets |
1,227,851 |
1,015,089 |
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Fixed assets net
value |
273,789 |
269,912 |
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Projects under
construction |
51,202 |
40,991 |
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Long term
investment |
6,930 |
7,131 |
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Other assets |
117,068 |
110,740 |
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Total assets |
1,676,840 |
1,443,863 |
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============= |
============= |
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Short loans |
287,875 |
273,825 |
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Accounts payable |
320,498 |
250,665 |
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Accounts
receivable advance |
7,203 |
11,520 |
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Bills payable |
467,235 |
388,521 |
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Taxes payable |
29,319 |
14,835 |
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Salaries payable |
0 |
0 |
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Other payable |
41,887 |
23,250 |
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Accrued expenses |
13,587 |
0 |
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Long term
liabilities due within one year |
0 |
0 |
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Other current
liabilities |
9,007 |
8,410 |
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------------------ |
------------------ |
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Current liabilities |
1,176,611 |
971,026 |
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Long term
liabilities |
6,841 |
12,955 |
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------------------ |
------------------ |
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Total
liabilities |
1,183,452 |
983,981 |
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Equities |
493,388 |
459,882 |
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------------------ |
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Total liabilities
& equities |
1,676,840 |
1,443,863 |
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Consolidated
Income Statement
Unit: CNY’000\
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As of Jun. 30,
2007 |
As of Dec. 31, 2006 |
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Turnover |
1,088,081 |
580,159 |
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Cost of goods
sold |
924,991 |
509,722 |
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Sales expense |
34,852 |
19,878 |
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Management expense |
40,285 |
20,989 |
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Finance expense |
19,640 |
13,684 |
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Profit before
tax |
46,827 |
10,568 |
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Minority
Shareholders’ profit and loss |
11,688 |
750 |
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Less: profit tax |
13,321 |
1,800 |
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Profits |
33,505 |
8,768 |
Important Ratios
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as
of Jun. 30, 2007 |
as
of Dec. 31, 2006 |
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*Current ratio |
1.04 |
1.05 |
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*Quick ratio |
0.87 |
0.83 |
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*Liabilities
to assets |
0.71 |
0.68 |
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*Net profit
margin (%) |
3.03 |
1.51 |
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*Return on
total assets (%) |
1.97 |
0.61 |
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*Inventory
/Turnover ×365 |
69days |
129days |
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*Accounts
receivable/Turnover ×365 |
118days |
172days |
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*Turnover/Total
assets |
0.65 |
0.40 |
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* Cost of goods
sold/Turnover |
0.85 |
0.88 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in 2006 and in the first half
year of 2007.
l
SC’s net profit margin is average in 2006 and in the first half year of
2007.
l
SC’s return on total assets is average in 2006 and in the first half
year of 2007.
l
SC’s cost of goods sold is average in 2006 and in the first half year of
2007, comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal level in 2006 and in
the first half year of 2007.
l
SC’s quick ratio is maintained in a normal level in 2006 and in the
first half year of 2007.
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The accounts receivable of SC is fairly large 2006 and average in the
first half year of 2007.
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The inventory conversion period of SC appears long.
l
The short term loan of SC is fairly large in 2006 and in the first half
year of 2007.
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SC’s turnover is in an average in 2006 and in a fairly good level in the
first half year of 2007, comparing with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is fairly high.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Stable.
SC is well-known in its industry with stable financial conditions. A
credit line up to USD 3,000,000 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%)