MIRA INFORM REPORT
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Report Date : |
04.02.2012 |
IDENTIFICATION DETAILS
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Name : |
ZHEJIANG HUAYI IMPORT AND EXPORT CO., LTD |
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Registered Office : |
No. 138, Ningkang West Road, Yuecheng Town, Yueqing, Zhejiang Province
325600 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
13.05.2004 |
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Com. Reg. No.: |
330382000063176 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in selling electrical products |
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No. of Employees
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28 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 40,000 |
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Status : |
Moderate |
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Payment
Behaviour : |
No Complaints |
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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 – September 30th, 2011
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Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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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
ZHEJIANG HUAYI IMPORT AND EXPORT CO., LTD.
NO. 138, NINGKANG WEST ROAD, YUECHENG TOWN,
YUEQING, ZHEJIANG PROVINCE 325600 PR CHINA
TEL: 86 (0) 577-27898876 FAX: 86 (0) 577-27898866
EXECUTIVE SUMMARY
INCORPORATION DATE : MAY 13, 2004
REGISTRATION NO. : 330382000063176
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
STAFF STRENGTH :
28
REGISTERED CAPITAL : CNY 5,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 66,890,000 (AS OF DEC. 31,
2010)
EQUITIES :
CNY 5,680,000 (AS OF DEC. 31, 2010)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO
USD 40,000
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.30= USD 1
Adopted abbreviations
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Renminbi
SC was registered as a Limited liabilities co. at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on May 13, 2004.
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 selling hardware, wires, cables &
accessories, auto parts and accessories, household appliances, daily
necessaries, water conservancy & hydropower equipment, solar equipment,
generators, motors, transformers, rectifiers, inductors, capacitors &
supporting equipment, power distribution switch control equipment, power
electronic components, other power distribution and control equipment, other
machinery equipment & electronic products, other chemical products; importing
and exporting commodities and technologies; text translation; wholesale of
trade manage and agency.
SC is mainly
engaged in selling electrical products.
Mr. Chen Daorong
is legal representative and chairman of SC at present.
SC is known to
have approx. 28 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office in Yueqing. Our checks
reveal that SC rents the total premise about 150 square meters.
SC is
not known to host web site of its own at present.
No significant events or changes were found during our
checks with the local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name % of Shareholding
Huayi Electric Apparatus Group Co., Ltd. 52.2
Li Weiming 24.0
Chen Menglie 10.0
Other individuals 13.8
Huayi Electric Apparatus Group Co., Ltd.
==============================
Registered no.: 330382000043559
Legal representative: Chen Daorong
Tel: 0577-62666666
Fax: 0577-62533888
Add: Yanpanxin Road, Economic Development
Zone, Yueqing, Zhejiang Province
Web: http://www.heag.com/
Email: heag@heag.com
l
Legal representative and Chairman:
Mr. Chen Daorong, with university education. He is currently responsible
for the overall management of SC.
Working Experience(s):
At present Working in SC as legal representative and chairman.
Also working in Huayi Electric Apparatus Group Co., Ltd., Huayi Electric Company Limited, Huayi Investment Holding Co., Ltd., Zhejiang Huayi Electric Science & Technology Co., Ltd. as legal representative.
SC is mainly
engaged in selling electrical products.
SC’s products mainly include switchgear, circuit breakers, etc.
SC sources its materials
60% from domestic market and 40% from overseas market. SC sells 30% in domestic
market and 70% 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.
Note:
SC declined to release its major suppliers and clients.
Huayi Electric Company Limited
Huayi
Investment Holding Co., Ltd.
Zhejiang
Huayi Electric Science & Technology 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 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 accountant refused
to release the bank details.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
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Cash & bank |
4,990 |
5,040 |
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Inventory |
110 |
110 |
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Accounts
receivable |
160 |
26,930 |
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Advances to
suppliers |
120 |
810 |
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Other
receivables |
4,850 |
1,870 |
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Other current
assets |
70 |
2,880 |
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------------------ |
------------------ |
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Current assets |
10,300 |
37,640 |
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Fixed assets net
value |
70 |
210 |
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Long term
investment |
0 |
0 |
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Projects under
construction |
0 |
0 |
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Intangible and
other assets |
290 |
190 |
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------------------ |
------------------ |
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Total assets |
10,660 |
38,040 |
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=========== |
=========== |
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Short loan |
0 |
1,520 |
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Accounts payable |
3,150 |
29,290 |
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Advances from
clients |
2,230 |
0 |
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Taxes payable |
40 |
200 |
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Other Accounts
payable |
320 |
240 |
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Other current
liabilities |
440 |
1,110 |
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------------------ |
------------------ |
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Current
liabilities |
6,180 |
32,360 |
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Long term liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
6,180 |
32,360 |
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Equities |
4,480 |
5,680 |
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------------------ |
------------------ |
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Total
liabilities & equities |
10,660 |
38,040 |
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Income Statement
Unit: CNY’000
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As
of Dec. 31, 2010 |
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Turnover |
66,890 |
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Cost of goods sold |
54,930 |
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Sales expense |
10,190 |
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Management expense |
750 |
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Finance expense |
210 |
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Profit before tax |
1,010 |
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Less: profit tax |
250 |
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Profits |
760 |
Important
Ratios
=============
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As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
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*Current ratio |
1.67 |
1.16 |
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*Quick ratio |
1.65 |
1.16 |
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*Liabilities
to assets |
0.58 |
0.85 |
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*Net profit
margin (%) |
/ |
1.14 |
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*Return on
total assets (%) |
/ |
2.00 |
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*Inventory
/Turnover ×365 |
/ |
1 day |
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*Accounts
receivable/Turnover ×365 |
/ |
147 days |
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*Turnover/Total
assets |
/ |
1.76 |
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* Cost of
goods sold/Turnover |
/ |
0.82 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in 2010.
l
SC’s net profit margin is average in 2010.
l
SC’s return on total assets is average in 2010.
l
SC’s cost of goods sold is average, comparing with
its turnover in 2010.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a fairly good
level in 2009 and in a normal level in 2010.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears average in
2009 but large in 2010.
l
The short-term loan of SC appears average in 2010.
l
SC’s turnover is in an average level, comparing
with the size of its total assets in 2010.
LEVERAGE: FAIR
l
The debt ratio of SC is average in 2009 but high in
2010.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
SC is considered small-sized in its line with fairly stable financial conditions.
The large amount of accounts receivable could be a threat to SC’s financial
condition. A credit line up to USD 40,000 would appear to be within SC’s
capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.48.96 |
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UK Pound |
1 |
Rs.77.47 |
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Euro |
1 |
Rs.64.39 |
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 |
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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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.