MIRA
INFORM REPORT
|
Report Date : |
11.02.2012 |
IDENTIFICATION DETAILS
|
Name : |
HUAYI COMPRESSOR CO., LTD. |
|
|
|
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Registered Office : |
No. 1 Changhong Road, Hi-Tech Development Zone,
Jingdezhen, Jiangxi Province, 333000 Pr |
|
|
|
|
Country : |
China |
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|
|
|
Financials (as on) : |
30.09.2011 |
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|
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Date of Incorporation : |
31.08.1995 |
|
|
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Com. Reg. No.: |
360000110000494 |
|
|
|
|
Legal Form : |
Shares Limited Co. |
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|
|
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Line of Business : |
Producing and selling Freon-free compressors |
|
|
|
|
No. of Employees : |
6,146 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 5,000,000 |
|
Status : |
Good |
|
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 name and address
HUAYI
COMPRESSOR CO., LTD.
NO. 1 CHANGHONG ROAD, HI-TECH DEVELOPMENT ZONE, JINGDEZHEN,
JIANGXI PROVINCE, 333000 PR CHINA
TEL: 86 (0) 798-8470206/8470207 FAX:
86 (0) 798-8442808
EXECUTIVE SUMMARY
INCORPORATION DATE : AUG. 31, 1995
REGISTRATION NO. :
360000110000494
REGISTERED LEGAL FORM :
SHARES LIMITED CO.
CHIEF EXECUTIVE :
MR. LIU TIBIN (CHAIRMAN)
STAFF STRENGTH :
6,146
REGISTERED CAPITAL : CNY 324,581,220
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 4,328,123,000 (CONSOLIDATED, JAN. 1 TO SEP. 30, 2011)
EQUITIES : CNY 923,002,000 (CONSOLIDATED, AS OF
SEP. 30, 2011)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 5,000,000 (PERIODICAL REVIEW)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY
stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : well
known
EXCHANGE RATE :
CNY 6.29 = 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 shares limited co. at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license).
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 The minimum registered capital
of a co. is CNY 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 producing and
selling freon-free compressors, refrigerators and components, processing with
imported refrigeration materials, processing with imported refrigeration
samples, assembling with imported refrigeration parts and compensation trade of
refrigeration equipment in agreement; processing and selling hardware
components; foreign trade (excluding the items administrated by the state).
SC is
mainly engaged in producing and selling Freon-free compressors.
Mr.
Liu Tibin has been legal representative and chairman of SC since 2008.
SC is known
to have approx. 6,146 employees, including 4,365 workers, 590 utility
workers, 129 sales staff, 399 technical staff, 55 financial staff, and 608
administrative staff.
SC is currently operating at the above stated address, and this address houses its operating office and factory in the hi-tech development zone of Jingdezhen. SC’s management declined to release detailed information of the premise.
http://www.hua-yi.cn The design is
professional and the content is well organized. At present it is in Chinese
version.
E-Mail: hyzq@hua-yi.cn
SC is a listed company in Shenzhen Stock Exchange Market
with the code of 000404.
Changes
of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
Unknown |
Registration No. |
3600001130630 |
Present one |
MAIN SHAREHOLDERS: (As of June
30, 2011)
Name %
of Shareholding
Sichuan Changhong Electric Co.,
Ltd. 29.92
Hisense Kelon Electrical
Holdings Company Limited 6.45
East China Sea Securities- Bank of Communications-
Dongfeng No. 5 Collective Asset
Management Plan 4.11
109 combination of the National
Social Security Fund 3.50
China Construction Bank-
Changsheng Celebration Separated
Stock Securities Investment Fund
3.08
Jingdezhen State-owned Assets
Management Co., Ltd. 2.08
Taikang Life Insurance Co.,
Ltd.-
Traditional - General insurance
products
Taikang Life Insurance Co.,
Ltd.-
Toulian - Aggressive
603 combinations of the National
Social Security Fund 1.23
Yangtze River Jinsewanqing
(collection type) enterprise annuity plan-
Pudong Development Bank
0.96
Other shareholders 45.78
Sichuan Changhong Electric Co.,
Ltd.
………………………………………
Legal representative: Zhao Yong
Registration No.:
510700000025452
Registered capital: CNY
4,616,240,000
Stock Code: 600839
Website: http://www.changhong.com/
Add: No. 35 Mianxing East Road,
High-tech Zone, Mianyang, Sichuan Province
Tel: 0816-2418486
Fax: 0816-2418518
l
Legal representative and
chairman:
Mr. Liu Tibin, born in 1963 with doctor’s degree, senior
accountant, he is currently responsible for the overall management of SC.
Working Experience(s):
From 2008 to present Working in SC as chairman and legal representative;
Also
working in Sichuan Changhong Electric Group Co., Ltd. as vice-chairman, working
in Sichuan Changhong Electric Co., Ltd. as vice-chairman and general manager,
and working in Jiaxipera Compressor Co., Ltd. as chairman
l
General manager:
Mr. Zhu Jinsong, born in 1948 with university education,
senior engineer, he is currently responsible for the daily management of SC.
Working Experience(s):
From 2009 to present Working in SC as general manager;
Also working in Jiaxipera Compressor Co., Ltd. as general
manager
SC is
mainly engaged in producing and selling Freon-free compressors.
SC’s products mainly include: refrigeration compressors.
SC sources its materials 80% from domestic market and 20%
from the overseas market. SC sells 25% of its products to overseas market, mainly in the America,
Europe and Africa, and 75% in domestic market.
The buying terms of SC include Check, L/C, T/T 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*
=============
Shanxi Taigang Stainless Steel Co., Ltd.
Hefei Meiling Electric Co., Ltd.
*Major Customers*
==============
Hefei Rongshida Refrigerator Co., Ltd.
Huayi Household Appliance Accessories Co., Ltd.
Hisense Kelon Electrical Holdings Company Limited
Hisense (Beijing) Electric Co., Ltd.
Hefei Meiling Electric Co., Ltd.
Huayi Electric Appliance Head Corporation
Qingdao Aokema Material Sales Corp.
*Subsidiaries*
===========
Huayi Compressor (Jingzhou) Co., Ltd.
Jiaxipera Compressor Co., Ltd.
Jingdezhen Huayi Foreign Trade Co., Ltd.
Zhejiang Jiaxipera Investment Development Co., Ltd.
Jingdezhen Honghua Household Appliance Accessories Co., Ltd.
Jingdezhen Huayi Jinghua Electric Co., Ltd.
Etc.
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
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.
SC’s management
declined to release its banking details.
Consolidated
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31,
2010 |
As of Sep. 30,
2011 |
|
Cash & bank |
268,730 |
437,756 |
|
Held for trading
financial assets |
219 |
0 |
|
Notes receivable |
672,682 |
964,590 |
|
Advances to
suppliers |
64,013 |
37,210 |
|
Accounts
receivable |
586,151 |
1,070,260 |
|
Inventory |
755,711 |
668,578 |
|
Other accounts
receivable |
46,193 |
19,442 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
2,393,699 |
3,197,836 |
|
Fixed assets net
value |
784,201 |
752,952 |
|
Projects under
construction |
105,460 |
131,119 |
|
Long term
investment |
129,814 |
129,083 |
|
Intangible
assets |
151,639 |
111,915 |
|
Goodwill |
9,241 |
9,241 |
|
Deferred tax
asset |
12,474 |
12,474 |
|
Other assets |
5,642 |
5,141 |
|
|
------------------ |
------------------ |
|
Total assets |
3,592,170 |
4,349,761 |
|
|
============= |
============= |
|
Short loans |
398,303 |
439,700 |
|
Notes payable |
724,673 |
1,387,217 |
|
Accounts payable |
1,046,904 |
1,143,143 |
|
Advances from
clients |
131,442 |
50,680 |
|
Payroll payable |
40,219 |
16,823 |
|
Taxes payable |
-33,398 |
-14,251 |
|
Other accounts payable |
259,021 |
271,433 |
|
Interest payable |
482 |
482 |
|
Dividend payable |
0 |
0 |
|
Other current
liabilities |
10,518 |
10,518 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
2,578,164 |
3,305,745 |
|
Non-current
liabilities |
124,672 |
121,014 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
2,702,836 |
3,426,759 |
|
Equities |
889,334 |
923,002 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
3,592,170 |
4,349,761 |
|
|
============= |
============= |
Consolidated
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2010 |
Jan.
1 to Sep. 30, 2011 |
|
Turnover |
4,617,019 |
4,328,123 |
|
Cost of goods sold |
4,087,686 |
3,940,051 |
|
Tax and associate charge |
14,382 |
5,900 |
|
Sales expense |
71,937 |
76,507 |
|
Management expense |
281,366 |
192,939 |
|
Finance expense |
59,541 |
46,835 |
|
Assets depreciation loss |
19,844 |
34,999 |
|
Add: Income from changes in fair value |
-9 |
-60 |
|
Investment
income |
762 |
-471 |
|
Non-operating
income |
20,584 |
44,757 |
|
Less:
Non-operating expense |
7,174 |
603 |
|
Profit before
tax |
96,426 |
74,515 |
|
Less: profit tax |
19,306 |
22,233 |
|
Profits |
77,120 |
52,282 |
Important Ratios
=============
|
|
As of Dec. 31,
2010 |
As of Sep. 30,
2011 |
|
*Current ratio |
0.93 |
0.97 |
|
*Quick ratio |
0.64 |
0.77 |
|
*Liabilities
to assets |
0.75 |
0.79 |
|
*Net profit
margin (%) |
1.67 |
1.21 |
|
*Return on
total assets (%) |
2.15 |
1.20 |
|
*Inventory
/Turnover ×365
|
60 days |
56 days |
|
*Accounts
receivable/Turnover ×365
|
46 days |
90 days |
|
*Turnover/Total
assets |
1.29 |
1.00 |
|
* Cost of
goods sold/Turnover |
0.89 |
0.91 |
PROFITABILITY:
AVERAGE
l
The turnover 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 average,
comparing with its turnover.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained
in a fair level.
l
SC’s quick ratio is maintained in a
fair level.
l
The inventory of SC appears fairly
large.
l
The accounts receivable of SC appears
fairly large.
l
SC’s short-term loan appears average.
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 low.
Overall
financial condition of the SC: Fairly stable.
SC is considered large-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 5,000,000 appears acceptable
upon a periodical review basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.64 |
|
|
1 |
Rs.78.35 |
|
Euro |
1 |
Rs.65.79 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.