MIRA INFORM
REPORT
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Report Date : |
04.07.2012 |
IDENTIFICATION DETAILS
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Name : |
HUAYI COMPRESSOR (JINGZHOU) CO., LTD. |
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Registered Office : |
West Of |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
05.02.2001 |
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Com. Reg. No.: |
421000400001444 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
manufacturing and selling
compressors |
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No. of Employees : |
800 |
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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Status : |
Satisfactory |
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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 – March 31st, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
|
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
HUAYI COMPRESSOR
(JINGZHOU) CO., LTD.
WEST OF DONGFANG AVENUE (NO. 66),
DEVELOPMENT ZONE,
JINGZHOU, HUBEI PROVINCE, 434000 PR CHINA
TEL: 86 (0) 716-8303019/8303038 FAX: 86 (0) 716-8303039
EXECUTIVE SUMMARY
INCORPORATION DATE : FEB. 5, 2001
REGISTRATION NO. :
421000400001444
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE
ENTERPRISE
STAFF STRENGTH :
800
REGISTERED CAPITAL : CNY 30,000,000
BUSINESS LINE :
MANUFACTURING & TRADING
TURNOVER :
CNY 456,950,000 (AS OF DEC. 31,
2011)
EQUITIES :
CNY 77,510,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.32 = 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
%20CO%20,%20LTD%20%20-%20186127%2004-Jul-2012_files/image021.gif){kind=small}
SC was registered as a Chinese-foreign equity joint venture
enterprise at local Administration for Industry & Commerce (AIC - The
official body of issuing and renewing business license) on Feb. 5, 2001.
Company Status: Chinese-Foreign Equity Joint Venture This form of business in PR
China is defined as a legal person. It is a limited co. jointly invested by
one or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of
capital investment. The investing parties exercise business management,
share profits and bear all risks and liabilities of the co. together. The
equity joint venture law requires that foreign party contribute not less
than 25% of the registered capital, with no maximum. The investing parties
are free to agree on method of profit distribution and liabilities bearing
according to the proportion of capital investment. Each investing parties
contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has a
limited duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition
position in international market may extend beyond the 50 years limit.
SC’s registered
business scope includes researching, manufacturing and selling non-fresno freezers
compressor and related products, small household appliances, researching and
developing new products; importing and exporting commodities and technologies;
importing and exporting business on self needed materials, instrument &
meters, mechanical equipments, parts and technologies (excluding items limited
or forbidden by State); processing (with) imported materials, three forms of
OEM and compensation trades; (with permit if needed).
SC is mainly
engaged in manufacturing and selling compressors.
Mr. Zhu Jinsong is
legal representative, chairman and general manager of SC at present.
SC is known to
have approx. 800 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the development zone of Jingzhou. Our checks
revealed that SC owns the total premise, but the detailed information about the
premise is unspecific.
%20CO%20,%20LTD%20%20-%20186127%2004-Jul-2012_files/image022.gif){kind=small}
http://www.hyccjz.com/
the design is professional and the content is well organized. At present it is
in both English and Chinese versions.
Email: hyjzsc@163.com
%20CO%20,%20LTD%20%20-%20186127%2004-Jul-2012_files/image023.gif){kind=small}
\
Honors and
certificates:
ISO9001:2000 certificate
VDE certificate
High & New enterprise of Hubei Province
Advanced enterprise of Jingzhou
Etc.
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%20CO%20,%20LTD%20%20-%20186127%2004-Jul-2012_files/image007.jpg)
%20CO%20,%20LTD%20%20-%20186127%2004-Jul-2012_files/image009.jpg)
%20CO%20,%20LTD%20%20-%20186127%2004-Jul-2012_files/image011.jpg)
%20CO%20,%20LTD%20%20-%20186127%2004-Jul-2012_files/image024.gif){kind=small}
MAIN SHAREHOLDERS:
Name %
of Shareholding
Huayi Compressor Co., Ltd. 51
Singapore Yaleng Electric Pte. Ltd. (in
Chinese pinyin) 26
Yu Hongjun and other 18 individuals 23
Huayi Compressor Co., Ltd.
=====================
The said company is listed in Shenzhen Stock
Exchange market with code 000404.
Registration no.: 360000110000494
Legal representative: Liu Tibin
Add: No. 1, Changhong Avenue, High& New
Development Zone, Jingdezhen, Jiangxi Province
Tel: 86-0798-8470206/8470207
Fax: 86-0798-8442808
Website: http://www.hua-yi.cn/
%20CO%20,%20LTD%20%20-%20186127%2004-Jul-2012_files/image025.gif){kind=small}
Legal
Representative, Chairman and General Manager:
Mr. Zhu Jinsong, born in 1948 with
university education, senior engineer, he is currently responsible for the
overall management of SC.
Working Experience(s):
At present Working
in SC as legal representative, chairman and general manager;
Also working in Huayi Compressor Co., Ltd.
as general manger
%20CO%20,%20LTD%20%20-%20186127%2004-Jul-2012_files/image026.gif){kind=small}
SC is mainly
engaged in manufacturing and selling compressors.
SC’s mainly products include: R
SC sources its materials 95% from domestic
market, 5% from overseas market. SC sells 70% of its products in domestic
market, and 30% to overseas market, mainly Britain, Korea, Argentina, Iran,
etc.
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 refused
to release its major suppliers and customers.
%20CO%20,%20LTD%20%20-%20186127%2004-Jul-2012_files/image027.gif){kind=small}
According to the website http://www.hua-yi.cn/:
Jingdezhen Huayi Foreign Trade Co., Ltd.
Jingdezhen Honghua Household Appliance Components Co., Ltd.
Jiaxipera Compressor Limited Company
Etc.
%20CO%20,%20LTD%20%20-%20186127%2004-Jul-2012_files/image028.gif){kind=small}
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.
%20CO%20,%20LTD%20%20-%20186127%2004-Jul-2012_files/image029.gif){kind=small}
SC refused to release
its banking information.
%20CO%20,%20LTD%20%20-%20186127%2004-Jul-2012_files/image030.gif){kind=small}
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Balance Sheet
|
Unit: CNY’000 |
as
of Dec. 31, 2010 |
as
of Dec. 31, 2011 |
|
Cash & bank |
45,000 |
/ |
|
Inventory |
22,280 |
/ |
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Accounts
receivable |
46,740 |
/ |
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Advances to
suppliers |
4,500 |
/ |
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Notes receivable |
8,980 |
/ |
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Other accounts
receivable |
1,290 |
/ |
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Prepaid expenses |
0 |
/ |
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Other current
assets |
60 |
/ |
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|
------------------ |
------------------ |
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Current assets |
128,850 |
/ |
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Fixed assets net
value |
48,590 |
/ |
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Projects under
construction |
2,450 |
/ |
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Long investment |
300 |
/ |
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Intangible
assets |
4,990 |
/ |
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Other assets |
410 |
/ |
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------------------ |
------------------ |
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Total assets |
185,590 |
275,780 |
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|
============= |
============= |
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Short loans |
14,500 |
/ |
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Accounts payable |
69,810 |
/ |
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Notes payable |
31,310 |
/ |
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Advances from
clients |
460 |
/ |
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Other accounts
payable |
400 |
/ |
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Accrued Wages |
1,280 |
/ |
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Tax and due
payable |
-160 |
/ |
|
Accrued expenses |
0 |
/ |
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Other current
liabilities |
0 |
/ |
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|
------------------ |
------------------ |
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Current
liabilities |
117,600 |
/ |
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Long term
liabilities |
1,980 |
/ |
|
Other
liabilities |
0 |
/ |
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|
------------------ |
------------------ |
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Total
liabilities |
119,580 |
198,270 |
|
Equities |
66,010 |
77,510 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
185,590 |
275,780 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
as of Dec. 31,
2010 |
as of Dec. 31,
2011 |
|
Turnover |
273,830 |
456,950 |
|
Cost of goods sold |
247,220 |
/ |
|
Sales expense |
8,340 |
/ |
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Management expense |
12,180 |
/ |
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Finance expense |
440 |
/ |
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Loss from asset devaluation |
1,180 |
/ |
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Non-operation
income |
1,230 |
/ |
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Non-operation expense |
80 |
/ |
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Profit before
tax |
5,590 |
/ |
|
Less: profit tax |
930 |
/ |
|
Profits |
4,660 |
11,300 |
Note: we did not find SC’s detailed
financial reports for Yr 2011.
Important
Ratios
=============
|
|
As of Dec. 31, 2010 |
As of Dec. 31, 2011 |
|
*Current ratio |
1.10 |
/ |
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*Quick ratio |
0.91 |
/ |
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*Liabilities
to assets |
0.64 |
0.72 |
|
*Net profit
margin (%) |
1.70 |
2.47 |
|
*Return on
total assets (%) |
2.51 |
4.10 |
|
*Inventory
/Turnover ×365 |
30
days |
/ |
|
*Accounts
receivable/Turnover ×365 |
63
days |
/ |
|
*Turnover/Total
assets |
1.48 |
1.66 |
|
* Cost of
goods sold/Turnover |
0.90 |
/ |
%20CO%20,%20LTD%20%20-%20186127%2004-Jul-2012_files/image031.gif){kind=small}
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in its line,
and it increased greatly in 2011.
l
SC’s net profit margin is average in both years.
l
SC’s return on total assets is average in 2010 and
fairly good in 2011.
l
SC’s cost of goods sold is average in 2010,
comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level in 2010.
l
SC’s quick ratio is maintained in a normal level in
2010.
l
The inventory of SC appears average in 2010.
l
The accounts receivable of SC appears average in
2010.
l
The short term loan of SC is average in 2010.
l
SC’s turnover is in an average level in both years,
comparing with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Stable.
%20CO%20,%20LTD%20%20-%20186127%2004-Jul-2012_files/image032.gif){kind=small}
SC is considered medium-sized in its line with stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.81 |
|
UK Pound |
1 |
Rs.86.04 |
|
Euro |
1 |
Rs.69.62 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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 |
|
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 |
---- |
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.