MIRA
INFORM REPORT
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Report Date : |
30.05.2012 |
IDENTIFICATION DETAILS
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Name : |
ningbo hongri electric appliance co., ltd. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2009 |
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Date of Incorporation : |
12.02. 2001 |
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Com. Reg. No.: |
330200400031849 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture |
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Line of Business : |
Manufacturing and selling electric appliance |
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No. of Employees : |
100 |
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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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 – March 31st, 2012
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Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
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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 and address
ningbo hongri electric appliance co., ltd.
No. 17 Hengpeng
Road, Henghe Town Cixi Zhejiang Province China
TEL: 86 (0)
574-63267710 FAX: 86 (0)
574-63267711
EXECUTIVE SUMMARY
INCORPORATION DATE : february 12, 2001
REGISTRATION NO. : 330200400031849
REGISTERED LEGAL FORM : Chinese-foreign equity
joint venture enterprise
STAFF STRENGTH :
100
REGISTERED CAPITAL : usd 250,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 62,310,000 (AS OF DEC. 31, 2009)
EQUITIES :
CNY 13,430,000 (AS OF DEC. 31, 2009)
PAYMENT :
AVERAGE
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 Chinese-foreign equity joint venture enterprise
at local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on February 12, 2001.
Company Status: Chinese-foreign equity joint venture
enterprise 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 manufacturing electric glass, food processing machine,
bread oven, coffee maker, juicer, and reducer.
SC is mainly engaged
in manufacturing and selling electric appliance.
Mr. Hu
Zhengyuan has been chairman of SC since
2001.
SC is known to
have approx. 100 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Cixi. Our checks reveal
that SC rents the total premise, but the gross area is unspecified.
http://china-cxhf.com
The website belongs to SC and Cixi City Hongfa Electric Appliance Co., Ltd. The
design is professional and the content is well organized. At present the web
site is both in Chinese and English versions.
E-mail: hhhjm@public.cx.nbptt.zj.cn
SC has got the certificate ISO9001.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Hong Kong Jindier International Limited 40
Hu Zhengyuan 60
Hong Kong Jindier International Limited:
==============================
Registered number: 1133889
Legal form: Private
l
Chairman and General Manager:
Mr. Hu Zhengyuan , ID# 330222421223581, 68 years old with university education.
He is currently responsible for the overall management of SC.
Working Experience(s):
From 2001 to present Working
in SC as chairman and general manager, also working in Cixi City Hongfa
Electric Appliance Co., Ltd. as chairman and general manager.
l
Board of Directors:
Sun Jianfen (ID# 330222197310095824)
Yang Meilan (ID# 330222480114582)
Hu Junming (ID# 330282197112205590)
SC is mainly
engaged in manufacturing and selling electric appliance.
Brand: 
SC’s products
mainly include: gear box, bearing case, clutch and electric kettle.
SC sources its materials 100% from domestic
market, mainly Zhejiang. SC sells 40% of its products in domestic market, and 60%
to overseas market, mainly India, Iran, Saudi Arabia, Kuwait, U.S.A., Japan,
Korea, Singapore, European countries.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
SC
is known to have a related company at present:
Cixi
City Hongfa Electric Appliance 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 declined to
release its bank details.
Balance Sheet
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Unit: CNY’000 |
as
of Dec. 31, 2009 |
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Cash & bank |
2,440 |
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Inventory |
3,190 |
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Accounts
receivable |
38,920 |
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Other Accounts
receivable |
4,890 |
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To be
apportioned expense |
0 |
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Other current
assets |
-40 |
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------------------ |
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Current assets |
49,400 |
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Fixed assets net
value |
4,410 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
-240 |
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Total assets |
53,570 |
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============= |
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Short loans |
3,010 |
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Accounts payable |
11,880 |
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Other Accounts
payable |
15,720 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
9,520 |
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Current
liabilities |
40,130 |
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Long term
liabilities |
0 |
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Other
liabilities |
10 |
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Total
liabilities |
40,140 |
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Equities |
13,430 |
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Total
liabilities & equities |
53,570 |
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Income Statement
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Unit: CNY’000 |
as of Dec. 31,
2009 |
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Turnover |
62,310 |
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Cost of goods
sold |
52,950 |
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Sales expense |
1,130 |
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Management expense |
1,920 |
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Finance expense |
530 |
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Other expense |
360 |
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Profit before
tax |
5,420 |
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Less: profit tax |
1,780 |
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Profits |
3,640 |
Note:
SC has not lodged the latest annual returns in local registry, hence no up-to
date detailed financial information available.
Important
Ratios
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As
of Dec. 31, 2009 |
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*Current ratio |
1.23 |
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*Quick ratio |
1.15 |
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*Liabilities to
assets |
0.75 |
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*Net profit
margin (%) |
5.84 |
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*Return on
total assets (%) |
6.79 |
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*Inventory
/Turnover ×365 |
19 days |
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*Accounts
receivable/Turnover ×365 |
228 days |
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*Turnover/Total
assets |
1.16 |
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* Cost of
goods sold/Turnover |
0.85 |
PROFITABILITY:
FAIRLY GOOD
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The turnover of SC appears average in its line.
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SC’s net profit margin is fairly good.
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SC’s return on total assets is fairly good.
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SC’s cost of goods sold is average, comparing with its
turnover.
LIQUIDITY: AVERAGE
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The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC is maintained in an average
level.
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The accounts receivable of SC appears large.
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SC’s short-term loan is in an average level.
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SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: AVERAGE
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The debt ratio of SC is average.
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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.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.55.58 |
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1 |
Rs.87.14 |
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Euro |
1 |
Rs.69.73 |
INFORMATION DETAILS
|
Report Prepared
by : |
PRL |
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.