MIRA
INFORM REPORT
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Report Date : |
18.07.2008 |
IDENTIFICATION
DETAILS
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Name : |
SHENZHEN GONGJIN ELECTRONICS CO. LTD |
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Registered Office : |
2/F, Block A, Baiying Medical Equipment Park, No. 1019, Nanhai Road, Shekou, Nanshan District, Shenzhen
City, Guangdong Province 518054 |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
24.11.1998 |
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Com. Reg. No.: |
440301102814626 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is
engaged in Researching, Developing, and Selling Various Electronic 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 900,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
Name & address
SHENZHEN GONGJIN ELECTRONICS CO., LTD.
2/f, block a, baiying medical equipment park,
no. 1019, nanhai road
shekou, nanshan district, shenzhen city
GUANGDONG PROVINCE 518054 PR CHINA
1019 A
TEL: 86 (0) 755-26062507/26021208 FAX: 86 (0) 755-26645696/26021223
EXECUTIVE SUMMARY
INCORPORATION DATE : Nov. 24, 1998
REGISTRATION NO. : 440301102814626
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
480
REGISTERED CAPITAL : CNY 30,000,000
BUSINESS LINE :
r&d and trading
TURNOVER :
CNY 819,340,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 76,630,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO
USD 900,000
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY GOOD
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.84 =US$
Adopted abbreviations
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Renminbi
Note: The given address 2F, New Energy Building,
Nanhai Road, Nanshekou Shenzhen, Guangdong was SC’s former address.
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. No more than fifty shareholders contribute its registered
capital jointly. 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 CNY 30,000. 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 30% 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 technical development and sales of broadband communication
equipment, computer & TV boxes, set-top boxes, and computer board cards;
purchasing and selling computers, software & hardware, and electronic
products; international trade; general freight.
SC is mainly
engaged in researching, developing, and selling various electronic products.
Ms. Wang Danhua
has been chairman of SC since 2001.
SC is known to
have approx. 480 employees 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 4,500 square meters.
SC is not known to host website of its own at present.
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 |
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Shareholder and shareholding |
Cui Zhengnan (CNY 500,000) Wang Danhua (CNY 500,000) |
Cui Zhengnan (CNY 500,000) Tang Fonan (CNY 5,020,000) Wang Dawei (CNY2,500,000) Wang Danhua (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 (CNY 500,000) Tang Fonan (CNY 5,020,000) Wang Dawei (CNY2,500,000) Wang Danhua (CNY 500,000) |
Cui Zhengnan (CNY 500,000) Tang Fonan (CNY 10,520,000) Wang Dawei (CNY 12,080,000) Wang Danhua (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 (CNY 500,000) Tang Fonan (CNY 10,520,000) Wang Dawei (CNY 12,080,000) Wang Danhua (CNY 500,000) |
Cui Zhengnan (CNY 500,000) Tang Fonan (CNY 13,720,000) Wang Dawei (CNY 15,280,000) Wang Danhua (CNY 500,000) |
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|
2007-8-27 |
Registration number |
4403012011338 |
440301102814626 |
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Cui Zhengnan 1.67
Tang Fonan 45.73
Wang Dawei 50.93
Wang Danhua 1.67
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.
Supervisor:
Qi Jianzhong
SC is mainly
engaged in researching, developing, and selling various electronic products.
SC’s products mainly include: broadband communication equipments,
computer & TV boxes, set-top boxes, and computer board cards.
SC sources its materials 80% from domestic
market, mainly from Guangdong, and 20% from overseas market. SC sells 60% of
its products in domestic market, and 40% to the overseas market, mainly Hong
Kong, European and American countries.
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.
*Major Suppliers*
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Shenzhen T & W Electronic Co., Ltd.
Shenzhen Jingzhong Electronics Co., Ltd.
*Major Customers*
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T&W Electronics (Hong Kong) Co., Ltd.
Dalian Huany Telecommunications Equipment Co., Ltd.
SC is known to have the following subsidiaries:
Shenzhen
Gongjin Electronics Co., Ltd, Jiangsu Branch
Shenzhen
Gongjin Electronics Co., Ltd, Wuhan Branch
Shenzhen
Gongjin Electronics Co., Ltd, Xi’an Branch
Shenzhen
Gongjin Electronics Co., Ltd, Liaoning Branch
Shenzhen
Gongjin Electronics Co., Ltd, Chengdu Branch
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’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’s management
declined to release its bank details.
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2006 |
As
of Dec. 31, 2007 |
|
Cash & bank |
31,460 |
89,320 |
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Inventory |
110,250 |
12,120 |
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Accounts
receivable |
84,100 |
91,020 |
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Other Accounts
receivable |
5,130 |
24,770 |
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Advances to
suppliers |
0 |
0 |
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To be
apportioned expense |
0 |
0 |
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Other current
assets |
30,260 |
154,800 |
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|
------------------ |
------------------ |
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Current assets |
261,200 |
372,030 |
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Fixed assets net
value |
38,100 |
91,290 |
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Projects under
construction |
0 |
0 |
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Long term
investment |
0 |
0 |
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Other assets |
50 |
40 |
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------------------ |
------------------ |
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Total assets |
299,350 |
463,360 |
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============= |
============= |
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Short loans |
80,000 |
148,990 |
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Accounts payable |
124,620 |
208,260 |
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Advance from clients |
0 |
0 |
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Other Accounts
payable |
29,860 |
11,520 |
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Withdraw the
expenses in advance |
0 |
0 |
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Other current
liabilities |
10,360 |
17,960 |
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------------------ |
------------------ |
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Current
liabilities |
244,840 |
386,730 |
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Long term liabilities |
0 |
0 |
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Other
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
244,840 |
386,730 |
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Equities |
54,510 |
76,630 |
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------------------ |
------------------ |
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Total
liabilities & equities |
299,350 |
463,360 |
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============= |
============= |
Income Statement
Unit: CNY’000
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As
of Dec. 31, 2006 |
As
of Dec. 31, 2007 |
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Turnover |
618,650 |
819,340 |
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Cost of goods
sold |
577,830 |
746,400 |
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Sales expense |
3,720 |
3,520 |
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Management expense |
21,680 |
44,810 |
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Finance expense |
5,690 |
5,490 |
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Profit before
tax |
9,860 |
25,200 |
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Less: profit tax |
740 |
3,080 |
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Profits |
9,120 |
22,120 |
Important Ratios
=============
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As
of Dec. 31, 2006 |
As
of Dec. 31, 2007 |
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*Current ratio |
1.07 |
0.96 |
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*Quick ratio |
0.62 |
0.93 |
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*Liabilities
to assets |
0.82 |
0.83 |
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*Net profit
margin (%) |
1.47 |
2.70 |
|
*Return on
total assets (%) |
3.05 |
4.77 |
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*Inventory
/Turnover ×365 |
65days |
5days |
|
*Accounts
receivable/Turnover ×365 |
50days |
41days |
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*Turnover/Total
assets |
2.07 |
1.77 |
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* Cost of
goods sold/Turnover |
0.93 |
0.91 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good, and it was rising in 2007.
l
SC’s net profit margin is average in 2006 and 2007.
l
SC’s return on total assets is fairly good, and it was rising in 2007.
l
SC’s cost of goods sold is fairly high in both 2 years, comparing with
its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal level in 2006 but fair
in 2007.
l
SC’s quick ratio is maintained in a fair level in 2006 and normal in
2007.
l
The inventory of SC is maintained in an average level in both 2 years.
l
The accounts receivable of SC appears average in both 2 years.
l
The short-term loan of SC appears large in 2007.
l
SC’s turnover is in an average level, 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 average.
Overall financial
condition of the SC: Fairly good.
SC is considered medium-sized in its line with fairly good financial conditions.
The large amount of short loans could be a threat to SC’s financial condition.
A credit line up to USD 900,000 appears to be within SC’s capacities.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.42.78 |
|
UK Pound |
1 |
Rs.85.51 |
|
Euro |
1 |
Rs.67.90 |
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 |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average. |
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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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%)