MIRA INFORM REPORT

 

 

Report Date :

21.10.2011

 

IDENTIFICATION DETAILS

 

Name :

SHEN ZHEN HCN ELECTRONICS CO., LTD.

 

 

Registered Office :

 9/F, Tower A, Hi-Tech Venture Park Mansion, Tian’an Cyber Park Futian District, Shenzhen, Guangdong Province 518040 Pr

 

 

Country :

China

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

19.08.1999

 

 

Com. Reg. No.:

440301103381906

 

 

Legal Form :

Limited Liabilities Company

 

 

Line of Business :

Manufacturing and selling digital products

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 15,000

Status :

Moderate

Payment Behaviour :

No Complaints

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 – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

China

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Company and address

 

SHEN ZHEN HCN ELECTRONICS CO., LTD.

(TRADE NAME: LIGHTCOMM TECHNOLOGY CO., LIMITED)

9/F, TOWER A, HI-TECH VENTURE PARK MANSION, TIAN’AN CYBER PARK

FUTIAN DISTRICT, SHENZHEN, GUANGDONG PROVINCE 518040 PR CHINA

TEL: 86 (0) 755-82049080

FAX: 86 (0) 755-82049078

 

 

EXECUTIVE SUMMARY

 

Date of Registration          : AUGUST 19, 1999

REGISTRATION NO.                  : 440301103381906

LEGAL FORM                           : Limited liabilities company

CHIEF EXECUTIVE         : HAUNG YAXIAN (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL             : CNY 24,000,000

staff                                      : 120

BUSINESS CATEGORY             : manufacturing

Revenue                                : CNY 28,982,000 (AS OF DEC. 31, 2010)

EQUITIES                                 : CNY 1,980,000 (AS OF DEC. 31, 2010)

WEBSITE                                 : www.hcn2000.com

E-MAIL                                     : N/A

PAYMENT                                : AVERAGE

Recommended Credit Limit: UP TO USD 15,000

MARKET CONDITION                : average

FINANCIAL CONDITION             : poor

OPERATIONAL TREND              : DOWNWARD

GENERAL REPUTATION           : FAIR

EXCHANGE RATE                     : CNY 6.38 = 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’s name should be the above stated one, Lightcomm Technology Co., Ltd. (the given name) is SC’s related company registered in Hong Kong, and however, SC always uses this name as its trade name.

 

SC was established as a limited liabilities company of PRC with State Administration of Industry & Commerce (SAIC) under registration No.: 440301103381906 on August 19, 1999.

 

SC’s Organization Code Certificate No.: 71522537-7

SC’s registered capital: CNY 24,000,000

 

SC’s paid-in capital: CNY 24,000,000

 

Registration Change Record:

Date

Change of Contents

Before the change

After the change

2000-4-13

Legal Representative

Sun Benyuan

Huang Yaxian

Shareholder (s) (% of Shareholding)

Sun Benyuan 40%

Huang Rongtian 20%

Zhao Zhijian 20%

Huang Yaxian 20%

Feng Yu 10%

Huang Yaxian 60%

Liao Jianqiong 10%

Zhu Shaojun 20%

2002-7-29

Shareholder (s) (% of Shareholding)

Feng Yu

10%

Huang Yaxian

60%

Liao Jianqiong

10%

Zhu Shaojun

20%

Lin Yuanting 3.2626%

Chen Zhaomin 1.6313%

Huang Yaxian

81.5660%

Zhang Jianyong

1.6313%

Feng Lian’en

0.8156%

Feng Yu

3.2626%

Jiang Yingjie

1.7128%

Liu Zhixiong

0.4078%

Huang Jinhong

3.2626%

Zhu Shaojun

2.4469%

2004-7-28

Shareholder (s) (% of Shareholding)

Lin Yuanting

3.2626%

Chen Zhaomin

1.6313%

Huang Yaxian

81.5660%

Zhang Jianyong

1.6313%

Feng Lian’en

0.8156%

Feng Yu

3.2626%

Jiang Yingjie

1.7128%

Liu Zhixiong

0.4078%

Huang Jinhong

3.2626%

Zhu Shaojun

2.4469%

Zhu Shaojun

2.4469%

Huang Jinhong

1.6313%

Lin Yuanting

3.2626%

Jiang Yingjie

1.7128%

Liu Zhixiong

0.4078%

Feng Lian’en

0.8156%

Feng Yu

3.2626%

Huang Yaxian

84.8287%

Zhang Jianyong

1.6313%

2007-4-27

Registered Capital

CNY 5,000,000

CNY 12,000,000

Shareholder (s) (% of Shareholding)

Zhu Shaojun

2.4469%

Huang Jinhong

1.6313%

Lin Yuanting

3.2626%

Jiang Yingjie

1.7128%

Liu Zhixiong

0.4078%

Feng Lian’en

0.8156%

Feng Yu

3.2626%

Huang Yaxian

84.8287%

Zhang Jianyong1.6313%

Feng Baogen

1.67%

Huang Yaxian

86.25%

Zhang Jianyong

1.67%

Lin Yuanting

3.33%

Jinag Yingjie

1.67%

Huang Jinhong

1.67%

Liu Zhixiong

0.41%

Feng Lian’en

0.83%

Zhu Shaojun

2.50%

2008-5-27

Registration No.

4403012030054

440301103381906

Shareholder (s) (% of Shareholding)

Feng Baogen

1.67%

Huang Yaxian

86.25%

Zhang Jianyong

1.67%

Lin Yuanting

3.33%

Jinag Yingjie

1.67%

Huang Jinhong

1.67%

Liu Zhixiong

0.41%

Feng Lian’en

0.83%

Zhu Shaojun

2.50%

Zhu Shaojun

2.50%

Zhang Jianyong

1.67%

Lin Yuanting

3.33%

Feng Lian’en

0.83%

Fu Pengju

0.67%

Li Yun

0.58%

Feng Baogen

1.67%

Liu Zhixiong

0.83%

Huang Jinhong

1.67%

Huang Yaxian

84.58%

Jiang Yingjie

1.67%

2008-11-14

Registered Capital

CNY 12,000,000

CNY 24,000,000

2010-2-3

Shareholder (s) (% of Shareholding)

Zhu Shaojun

2.50%

Zhang Jianyong

1.67%

Lin Yuanting

3.33%

Feng Lian’en

0.83%

Fu Pengju0.67%

Li Yun

0.58%

Feng Baogen

1.67%

Liu Zhixiong

0.83%

Huang Jinhong

1.67%

Huang Yaxian

84.58%

Jiang Yingjie1.67%

Lin Yuanting

3.33%

Huang Yaxian

84.25%

Jiang Yingjie

1.84%

Li Yun

0.62%

Feng Lian’en

0.83%

Zhu Shaojun

2.62%

Jin Guangyu

0.33%

Zhang Jianyong

1.84%

Liu Zhixiong

0.83%

Huang Jinhong

1.84%

Feng Baogen

1.67%

 

Current Co search indicates SC’s shareholders & chief executives are as follows:-

 

Name of Shareholder (s)

% of Shareholding

Lin Yuanting

3.33

Huang Yaxian

84.25

Jiang Yingjie

1.84

Li Yun

0.62

Feng Lian’en

0.83

Zhu Shaojun

2.62

Jin Guangyu

0.33

Zhang Jianyong

1.84

Liu Zhixiong

0.83

Huang Jinhong

1.84

Feng Baogen

1.67

 

SC’s Chief Executives:-

 

Position

Name

Legal Representative, Chairman, and General Manager

Huang Yaxian

Director

Jiang Yingjie

Zhang Jianyong

Supervisor

Feng Baogen

 

 

RECENT DEVELOPMENT

 

No recent development was found during our checks at present.

 

 

SHAREHOLDER CHART & BACKGROUND

 

Name                                                               % of Shareholding

 

Lin Yuanting                                                                  3.33

Huang Yaxian                                                                84.25

Jiang Yingjie                                                                  1.84

Li Yun                                                                           0.62

Feng Lian’en                                                                  0.83

Zhu Shaojun                                                                  2.62

Jin Guangyu                                                                  0.33

Zhang Jianyong                                                              1.84

Liu Zhixiong                                                                   0.83

Huang Jinhong                                                               1.84

Feng Baogen                                                                 1.67

 

 

MANAGEMENT

 

Huang Yaxian , Legal Representative, Chairman and General Manager

--------------------------------------------------------------------------------------------------------

Ø         Gender: M

Ø         Age: 40’s

Ø         Qualification: University

Ø         Working experience (s):

 

From 2000 to present, working in SC as legal representative, chairman and general manager

 

 

Liu Zhixiong , Deputy General Manager

---------------------------------------------------------------

Ø         Gender: M

Ø         Qualification: University

Ø         Working experience (s):

 

At present, working in SC as deputy general manager

 

 

Director

-----------

Jiang Yingjie

Zhang Jianyong

 

 

Supervisor

--------------

Feng Baogen

 

 

BUSINESS OPERATION

 

SC’s registered business scope includes technology development of electric appliances; domestic commerce; supplying and selling of commodities (excluding the products privileged, prohibited or franchised); manufacturing circuit boards, DVD players and digital-related products; international trade.

 

SC is mainly engaged in manufacturing and selling digital products.

Brand: HCN

 

SC’s products mainly include:

Car DVD Player

Digital Photo Frame

LED LCD TV

Etc.

   

SC sources its materials 70% from domestic market, and 30% from overseas market. SC sells 70% of its products in domestic market, and 30% to overseas market, mainly Southeast Asian market.

 

The buying terms of SC include 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 Supplier:

============

SANYO

SAMSUNG

PHILIPS

DAEWOO

VESTEL

 

Staff & Office:

--------------------------

SC is known to have approx. 120 staff at present.

 

SC owns an area as its operating office and factory, but the detailed information is unknown.

 

 

RELATED COMPANY

 

n         Lightcomm Technology Co., Limited (Hong Kong)

--------------------------------------------------------------------

Date of Registration: January 23, 2002

Registration No.: 0783615

Legal Form: Private

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 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.

 

 

BANKING

 

The bank information of SC is not filed in SAIC.

 

 

FINANCIALS

 

Financial Summary

Unit: CNY’000

As of Dec. 31, 2009

As of Dec. 31, 2010

Long term investment

2,800

2,800

Total assets

13,493

42,750

 

-------------

-------------

Long term liabilities

0

0

Total liabilities

11,488

40,770

Equities

2,005

1,980

 

-------------

-------------

Revenue

12,420

28,982

Profit before tax

-7,233

-25

Less: profit tax

0

0

Profits

-7,233

-25

 

Note: The detailed financials for Y2009 and Y2010 are not available in SAIC.

 

Important Ratios

=============

 

As of Dec. 31, 2009

As of Dec. 31, 2010

*Liabilities to assets

0.85

0.95

*Net profit margin (%)

-58.24

-0.09

*Return on total assets (%)

-53.61

-0.06

* Revenue/Total assets

0.92

0.68

 

 

FINANCIAL COMMENTS

 

PROFITABILITY: FAIR

l         The revenue of SC appears average, and it was rising in 2010.

l         SC’s net profit margin is poor in 2009 and fair in 2010.

l         SC’s return on total assets is poor in 2009 and fair in 2010.

 

LIQUIDITY: FAIR

l         SC’s revenue is in a fair 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 average.

 

Overall financial condition of the SC: Poor.

 

 

CONCLUSIONS

 

SC is considered medium-sized in its line with poor financial conditions. A credit line up to USD 15,000 would appear to be within SC’s capacities.

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.49.71

UK Pound

1

Rs.78.08

Euro

1

Rs.68.05

 

 

RATING EXPLANATIONS

 

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

--

NB

                                       New Business

 

--

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.