MIRA INFORM REPORT
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Report Date : |
17.08.2011 |
IDENTIFICATION DETAILS
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Name : |
ZHONGNAN ELECTRIC CO., LTD. |
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Registered Office : |
6/F Zhongnan Building, Jiewei,
Fuan, Fujian Province 355000 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
02.04.2001 |
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Com. Reg. No.: |
350981100008175 |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
manufacturing and selling motor and its parts |
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 1,000,000 |
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Status : |
Good |
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Payment
Behaviour : |
Satisfactory |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2011
|
Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
|
China |
a2 |
a2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Company name & address
Zhongnan Electric Co., Ltd.
6/f zhongnan building, jiewei, fuan, fujian province
355000 PR CHINA
TEL: 86 (0) 593-6606071/6331151
FAX: 86 (0) 593-6606117
EXECUTIVE SUMMARY
Date
of Registration : april 2, 2001
REGISTRATION
NO. : 350981100008175
LEGAL
FORM : One-person Limited Liability Company
REGISTERED
CAPITAL :
cny 71,880,000
staff : 180
BUSINESS
CATEGORY :
manufacturing and trading
Revenue : CNY
1,681,100,000 (AS OF DEC. 31,
2010)
EQUITIES : CNY 119,040,000
(AS OF DEC. 31, 2010)
WEBSITE : N/A
E-MAIL : N/A
PAYMENT
: AVERAGE
Recommended
Credit Limit: UP TO USD 1,000,000
MARKET
CONDITION : COMPETITIVE
FINANCIAL
CONDITION : fairly stable
OPERATIONAL
TREND :
fairly STEADY
GENERAL
REPUTATION : AVERAGE
EXCHANGE
RATE : CNY 6.39 = USD
1
Adopted abbreviations
(as follows)
SC - Subject Company (the company inquired by you)
N/A – Not available
CNY – China Yuan Ren Min Bi
OPERATIONAL TREND & GENERAL
REPUTATION
This section aims at
indicating the relative positions of SC in respect of its operational trend
& general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not
yet be determined
Not yet be
determined
LEGAL STATUS & HISTORY
Note:
SC is also known as Fuan Zhongnan Electrical Equipment Co., Ltd.
SC was established as a one-person limited
liability company of PRC with State Administration of Industry & Commerce
(SAIC) under registration No.: 350981100008175 on April 2, 2001.
SC’s Organization Code Certificate No.: 157606991
SC’s registered capital: cny 71,880,000
SC’s paid-in capital: cny 71,880,000
No significant changes of SC have been noted in SAIC since its
incorporation.
Current Co search
indicates SC’s shareholders & chief executives are as follows:-
|
Name of
Shareholder (s) |
% of
Shareholding |
|
Oneding Silicon Steel Group Co., Ltd. |
100 |
SC’s Chief
Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Liu Maojian |
|
General Manager |
Liu Maomei |
RECENT DEVELOPMENT
SC has got the
certificate ISO9001.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Oneding Silicon Steel Group Co., Ltd. 100
===========================
Oneding Silicon Steel Group Co., Ltd. was founded in October 2009, with
520 million CNY registered capital. As of the end of 2009, group's total assets
reached 4.463 billion CNY and the sales revenue of that year reached 5.919
billion CNY.
Web: www.oneding.com
MANAGEMENT
Liu Maojian, Legal Representative and
Chairman
----------------------------------------------------------------------------
Ø
Gender: M
Ø
Age:
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as legal representative and
chairman
Also
working in Oneding Silicon Steel Group Co., Ltd. as legal representative and
chairman
Liu Maomei, General Manager
----------------------------------------------------
Ø
Gender: F
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as general manager
Also working in Oneding Silicon Steel Group Co., Ltd.
as vice chairman
Lin Fuping, Sales
Manager
----------------------------------------------
Mobile: 86 (0) 15820625668
BUSINESS OPERATION
SC’s registered business scope includes manufacturing and selling motor and
its parts, selling household appliances and parts, metal materials (excluding
tungsten, antimony, tin).
SC is mainly engaged in manufacturing and
selling motor and its parts.
SC’s products mainly include: motor rotor,
cold-rolled silicon steel products, and steel products.
SC sources its materials 100% from domestic market, mainly Fujian. SC
sells 55% of its products in domestic market, mainly Wuhan, and 45% to overseas
market, mainly Middle East, and Southeast Asian market.
The buying terms of SC include T/T and Credit
of 30-60 days. The payment terms of SC include T/T, L/C and Credit of 30-60
days.
*Major Supplier:
=============
Oneding Silicon Steel Group Co., Ltd.
*Major Customer:
=============
Wuhan Iron and Steel Company Limited
Staff
& Office:
-------------------
SC is known to have approx. 180 staff at present.
SC owns an area as its operating office of
approx. 500 sq. meters at the heading address.
Note: SC’s factory locates in Minying Industrial
Park, Nanjiao, Fuan City, Fujian Province.
RELATED COMPANY
u
Wuxi
Sanzhou Cold-rolled Silicon Steel Co., Ltd.
u
Xingtai
Longhui Cold - Rolled Silicon Steel Co., Ltd.
u
Huai’an
Wanxin Motor Co., Ltd.
u
Rongcheng
Juxing Motor Parts Manufacturing Co., Ltd.
u
Fuan
Xinmao Cold Rolling Silicon Steel Co., Ltd.
u
Shanghai
Oneding Silicon-steel Sales Co., Ltd.
Etc.
PAYMENT
Overall payment
appraisal:
( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be 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 records 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.
BANKING
The bank information of SC is not filed in local SAIC.
FINANCIALS
Balance
Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2010 |
|
670,460 |
|
|
Accounts receivable |
15,070 |
|
Advances to suppliers |
500,200 |
|
Other receivable |
6,910 |
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Inventory |
135,940 |
|
Non-current assets within one year |
0 |
|
Other current assets |
6,780 |
|
|
------------------ |
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Current assets |
1,335,360 |
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Fixed assets |
35,440 |
|
Construction in progress |
40,630 |
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Intangible assets |
0 |
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Long-term investment |
16,560 |
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Deferred income tax assets |
0 |
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Other non-current assets |
11,250 |
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------------------ |
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Total assets |
1,439,240 |
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|
============= |
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Short-term loans |
86,000 |
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Notes payable |
1,263,270 |
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Accounts payable |
23,410 |
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Advances from clients |
92,590 |
|
Other payable |
6,300 |
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Other current liabilities |
-14,590 |
|
|
------------------ |
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Current liabilities |
1,456,980 |
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Non-current liabilities |
-136,780 |
|
|
------------------ |
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Total liabilities |
1,320,200 |
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Equities |
119,040 |
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|
------------------ |
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Total liabilities & equities |
1,439,240 |
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|
============= |
Income
Statement
|
Unit: CNY’000 |
As of Dec. 31, 2010 |
|
Revenue |
1,681,100 |
|
Cost of sales |
1,641,830 |
|
Sales expense |
18,900 |
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Management expense |
9,080 |
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Finance expense |
560 |
|
Profit before tax |
11,650 |
|
Less: profit tax |
2,910 |
|
8,740 |
Important Ratios
=============
|
|
As of Dec. 31, 2010 |
|
*Current ratio |
0.92 |
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*Quick ratio |
0.82 |
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*Liabilities to assets |
0.92 |
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*Net profit margin (%) |
0.52 |
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*Return on total assets (%) |
0.61 |
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*Inventory / Revenue ×365 |
30 days |
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*Accounts receivable/ Revenue ×365 |
4 days |
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* Revenue/Total assets |
1.17 |
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* Cost of sales / Revenue |
0.98 |
FINANCIAL COMMENTS
PROFITABILITY: AVERAGE
l
The
revenue of SC appears good in its 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 high, comparing with its revenue.
LIQUIDITY: AVERAGE
l
The
current ratio of SC is maintained in a fair 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 is maintained in an average level.
l
SC’s
short-term loan is in an average level.
l
SC’s
revenue is in an average level, comparing with the size of its total assets.
LEVERAGE: FAIR
l
The debt
ratio of SC is high.
l
The risk
for SC to go bankrupt is low.
Overall financial condition of the SC: Fairly
Stable.
CONCLUSIONS
SC is considered
medium-sized in its line with fairly stable financial conditions. Taking into
consideration of SC’s good background, a credit line up to USD 1,000,000 would appear to be within
SC’s capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.25 |
|
UK Pound |
1 |
Rs.73.88 |
|
Euro |
1 |
Rs.65.06 |
RATING EXPLANATIONS
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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 |
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.