MIRA
INFORM REPORT
|
Report Date : |
12.06.2012 |
IDENTIFICATION DETAILS
|
Name : |
HUANGSHI DONGBEI ELECTRICAL APPLIANCE CO.,
LTD. |
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Registered Office : |
No. 5, Wuhuang Road, Tieshan District,
Huangshi, Hubei Province, 435006 Pr |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
10.03.1999 |
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Com. Reg. No.: |
420000400004635 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
manufacturing and Selling plunger type hermetically sealed
compressors |
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No. of Employees : |
3,653 |
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 |
|
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 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
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High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Company name & address
HUANGSHI DONGBEI ELECTRICAL APPLIANCE CO., LTD.
NO. 5, WUHUANG ROAD, TIESHAN DISTRICT,
HUANGSHI, HUBEI PROVINCE, 435006 PR CHINA
TEL: 86 (0)
714-5431873 FAX:
86 (0) 714-5420558
EXECUTIVE SUMMARY
INCORPORATION DATE : MAR. 10, 1999
REGISTRATION NO. :
420000400004635
REGISTERED LEGAL
FORM : SHARES LIMITED COMPANY
STAFF STRENGTH :
3,653
REGISTERED CAPITAL : CNY 235,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 3,995,831,000 (CONSOLIDATED,
AS OF DEC. 31, 2011)
EQUITIES :
CNY 862,739,000 (CONSOLIDATED, AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : WELL
KNOWN
EXCHANGE RATE :
CNY 6.31= 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 Ren Min Bi
SC was registered as a shares limited company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Mar. 10, 1999.
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 manufacturing and selling refrigeration compressors and
compressor motors; developing, manufacturing and consulting of high-tech
products.
SC is mainly
engaged in manufacturing and selling plunger type hermetically sealed compressors.
Mr. Yang Baichang
has been legal representative and chairman of SC since 2005.
SC is known to
have approx. 3,653 employees at present, including 3,296 production staff,
161 technicians, 141 management staff, 40 sales representatives and 15 financial
staff.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Huangshi. Our checks reveal that SC owns the total premise
about 140,000 square meters.
SC
also has another address located in No. 6, East of Jinshan Road, Economic and
Technological Development Zone, Huangshi, Hubei Province
http://www.donper.com It is the website
of SC’s parent company Huangshi Dongbei Mech-Electrical Group Co., Ltd. The
design is professional and the content is well organized. At present it is in
Chinese, English and Italian versions.
E-mail: stock@donper.com
SC was listed in the Shanghai Stock Exchange in 1999 with stock code of 900956.
SC was ISO9001 certified in 1996, ISO9000: 2000 certified in 2001, and
ISO14000 certified in 2003.
In 2004, SC was awarded prize of UNDP/GEF, and the appraisal of the
State Environmental Protection Administration of China, which drove the
technical progress of the whole compressor industry and improved the integral
level of homemade compressors.
SC’s former registration no. was 002678.
Tax Registration Certificate No.: 420205710920880
Organization Code: 71092088-0
MAIN SHAREHOLDERS
(As of Dec. 31, 2011):
Name %
of Shareholding
Huangshi Dongbei Mech-Electrical Group Co.,
Ltd. 50.04
Sun Menglin 1.15
Changzhou ZEC Co., Ltd. 0.34
Shenyin Wanguo Nominees (H.K.) Ltd. 0.32
Jiang Liping 0.29
Wang Yujie 0.19
Zhou Jianbai 0.19
Zhang Zhiping 0.19
Jiang Zhongfa 0.18
Best Union Group Limited 0.17
Other shareholders: 46.94
Huangshi Dongbei Mech-Electrical Group Co.,
Ltd.
=====================================
Huangshi Dongbei Mech-Electrical Group Co., Ltd. is a large-scaled
professional corporation in researching, developing, producing and selling
refrigeration compressors. It was established in 1966. In 1994, it was reunited
to be a group company and now the group is consisted of 7 share controlling
companies, there are 6,000 staffs including 600 technicians. The headquarters
was located in the scenic spot of the well-known Dongfangshan hill and it
invested two new factories in Wuhu city of Anhui province and in Daye of
Huangshi city.
The main product of the group is refrigeration compressor; simultaneously,
it also researches and produces refrigeration equipments such as juice
dispenser, ice maker, ice cream machine as well castings, solar energy products
and fiber communication component.
The company is also known as Huangshi Donper M & E Group Co., Ltd.
Add: No. 5, Wuhuang Road, Tieshan District, Huangshi City, Hubei
Province
Tel: 86-0714-5431873 Fax: 86-0714- 5420558
E-Mail: trade@donper.com
Legal
representative and chairman:
Mr. Yang Baichang , born in 1955, with
master’s degree, senior economist. He is currently responsible for the overall
management of SC.
Working
Experience(s):
From 2005 to present Working in SC as legal representative
and chairman
Also working in Huangshi Dongbei Mech-Electrical Group Co., Ltd. as chairman; Huangshi Donper M & E Group Solar Energy Co., Ltd., Wuhu Abaur Mechanical & Electrical Co., Ltd. and Huangshi Donper Casting Co., Ltd. as legal representative.
General Manager:
Mr. Fang Zeyun, born in 1964, with master’s degree. He is currently
responsible for the daily management of SC.
Working
Experience(s):
Worked in SC as vice general manager, Dongbei Group Research Institute as president and Huangshi Dongbei Refrigeration Co., Ltd. as general manager
From May, 2008 to present Working in SC as general manager
Directors:
· Zhu Jinming
Liao Han’gang
Ruan Zhengya
Yu Yumiao
Xie Jincheng
Lu Yanying
Supervisors:
· Jiang Min
Wang Huasheng
Jiang Zhian
SC is mainly
engaged in manufacturing and selling plunger type hermetically sealed
compressors.
SC’s products mainly
include: reciprocating hermetic refrigerating compressor of 1/14HP ~ 3HP, which
are to produce R
SC sources its
materials 80% from domestic market, and 20% from the overseas market, mainly
European countries. SC sells 85% of its products in domestic market, and 15% to
the overseas market, mainly American and European countries.
The buying terms of SC include Check, 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 Clients:
============
Huangshi Dongbei Mech-Electrical Group Co.,
Ltd.
Huangshi Dongbei Refrigeration Co., Ltd.
SC
is known to have the following subsidiaries:
· Huangshi Sunshine Opto-Electronic Co., Ltd.
Huangshi Donper
Mech-Electrical Group Solar Energy Co., Ltd.
Wuhu Abaur Mechanical
& Electrical Co., Ltd.
Huangshi Donper Casting
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 refused to
release any information about its bank.
Consolidated
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31, 2011 |
as of Dec. 31, 2010 |
|
Cash & bank |
462,226 |
446,726 |
|
Notes receivable |
750,350 |
430,313 |
|
Inventory |
448,835 |
362,315 |
|
Accounts
receivable |
745,192 |
501,271 |
|
Advances to
supplies |
142,583 |
163,353 |
|
Other
receivables |
14,925 |
18,959 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
2,564,111 |
1,922,937 |
|
Long-term
investments |
83,887 |
85,691 |
|
Investment
property |
4,207 |
4,372 |
|
Fixed assets net
value |
945,638 |
726,664 |
|
Projects under
construction |
351 |
195,876 |
|
Intangible
assets |
77,749 |
42,774 |
|
Deferred income
tax assets |
7,400 |
7,560 |
|
Other assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
3,683,343 |
2,985,874 |
|
|
============= |
============= |
|
Short loans |
936,675 |
622,399 |
|
Notes payable |
781,686 |
686,138 |
|
Accounts payable |
819,227 |
595,500 |
|
Advances from
customers |
16,278 |
9,061 |
|
Accrued
Payroll |
21,200 |
30,267 |
|
Taxes payable |
6,218 |
-41,067 |
|
Dividend payable |
10,733 |
0 |
|
Other accounts
payable |
83,508 |
90,160 |
|
Non-current
liability due within one years |
7,561 |
120,000 |
|
Other
current liabilities |
0 |
0 |
|
|
----------------- |
----------------- |
|
Current
liabilities |
2,683,086 |
2,112,458 |
|
Long term
liabilities |
137,518 |
39,185 |
|
|
------------------ |
------------------ |
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Total
liabilities |
2,820,604 |
2,151,643 |
|
Shareholders
equities |
862,739 |
834,231 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
3,683,343 |
2,985,874 |
|
|
============= |
============= |
Consolidated
Income Statement
Unit: CNY’000
|
|
as of Dec. 31, 2011 |
as of Dec. 31, 2010 |
|
Turnover |
3,995,831 |
3,766,866 |
|
Cost of goods
sold |
3,583,318 |
3,305,580 |
|
Taxes
and additional of main operation |
7,735 |
7,781 |
|
Sales expense |
85,167 |
103,966 |
|
Management expense |
159,220 |
131,914 |
|
Finance expense |
73,367 |
49,312 |
|
Asset impairment loss |
-225 |
1,612 |
|
Investment
income |
-1,805 |
-3,465 |
|
Non-operating
income |
18,627 |
19,256 |
|
Non-operating expense |
9,505 |
1,694 |
|
Profit before
tax |
94,566 |
180,798 |
|
Less: profit tax |
16,799 |
28,484 |
|
Net profit |
77,767 |
152,314 |
Important Ratios
=============
|
|
As of Dec. 31, 2011 |
As of Dec. 31, 2010 |
|
*Current ratio |
0.96 |
0.91 |
|
*Quick ratio |
0.79 |
0.74 |
|
*Liabilities
to assets |
0.77 |
0.72 |
|
*Net profit
margin (%) |
1.95 |
4.04 |
|
*Return on
total assets (%) |
2.11 |
5.10 |
|
*Inventory
/Turnover ×365 |
42 days |
36 days |
|
*Accounts
receivable/Turnover ×365 |
69 days |
49 days |
|
*Turnover/Total
assets |
1.08 |
1.26 |
|
* Cost of goods
sold/Turnover |
0.90 |
0.88 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears good in both years.
l
SC’s net profit margin is average in both
years.
l
SC’s return on total assets is fairly good in 2010,
but average in 2011.
l
SC’s cost of goods sold is average in both years,
comparing with its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair
level in both years.
l
SC’s quick ratio is maintained in a fair level in
both years.
l
The inventory of SC is average in both years.
l
The accounts receivable of SC is average in both
years.
l
The short term loan of SC is fairly large in 2010,
but large in 2011.
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 in 2010, but fairly
high in 2011.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly Stable.
SC is well-known in its industry with fairly stable financial
conditions. The large amount of short loans could be a threat to SC’s financial
condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.24 |
|
UK Pound |
1 |
Rs.85.93 |
|
Euro |
1 |
Rs.69.82 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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 |
|
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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.