MIRA INFORM REPORT
|
Report Date : |
03.09.2012 |
IDENTIFICATION DETAILS
|
Name : |
SHENZHEN GUOWEI ELECTRONICS CO., LTD. |
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|
|
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Registered Office : |
No. 3038, Luosha Road, Liantang Industrial Zone, Luohu District,
Shenzhen, Guangdong Province, 518004 Pr |
|
|
|
|
Country : |
China |
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|
|
Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
16.07.1991 |
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Com. Reg. No.: |
440301501122735 |
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|
|
|
Legal Form : |
Chinese-Foreign Equity Joint
Venture Enterprise |
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|
|
|
Line of Business : |
manufacturing and selling fixed-line
phones, mobile phones and other communication terminal equipment. |
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|
|
|
No. of Employees
: |
350 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Poor |
|
Payment
Behaviour : |
Unknown |
|
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 |
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Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
CHINA - ECONOMIC OVERVIEW
Since the late
1970s China has moved from a closed, centrally planned system to a more
market-oriented one that plays a major global role - in 2010 China became the world's
largest exporter. Reforms began with the phasing out of collectivized
agriculture, and expanded to include the gradual liberalization of prices,
fiscal decentralization, increased autonomy for state enterprises, creation of
a diversified banking system, development of stock markets, rapid growth of the
private sector, and opening to foreign trade and investment. China has
implemented reforms in a gradualist fashion. In recent years, China has renewed
its support for state-owned enterprises in sectors it considers important to
"economic security," explicitly looking to foster globally
competitive national champions. After keeping its currency tightly linked to
the US dollar for years, in July 2005 China revalued its currency by 2.1%
against the US dollar and moved to an exchange rate system that references a
basket of currencies. From mid 2005 to late 2008 cumulative appreciation of the
renminbi against the US dollar was more than 20%, but the exchange rate
remained virtually pegged to the dollar from the onset of the global financial
crisis until June 2010, when Beijing allowed resumption of a gradual
appreciation. The restructuring of the economy and resulting efficiency gains
have contributed to a more than tenfold increase in GDP since 1978. Measured on
a purchasing power parity (PPP) basis that adjusts for price differences, China
in 2010 stood as the second-largest economy in the world after the US, having
surpassed Japan in 2001. The dollar values of China's agricultural and
industrial output each exceed those of the US; China is second to the US in the
value of services it produces. Still, per capita income is below the world
average. The Chinese government faces numerous economic challenges, including:
(a) reducing its high domestic savings rate and correspondingly low domestic
demand; (b) sustaining adequate job growth for tens of millions of migrants and
new entrants to the work force; (c) reducing corruption and other economic
crimes; and (d) containing environmental damage and social strife related to
the economy's rapid transformation. Economic development has progressed further
in coastal provinces than in the interior, and by 2011 more than 250 million
migrant workers and their dependents had relocated to urban areas to find work.
One consequence of population control policy is that China is now one of the
most rapidly aging countries in the world. Deterioration in the environment -
notably air pollution, soil erosion, and the steady fall of the water table,
especially in the North - is another long-term problem. China continues to lose
arable land because of erosion and economic development. The Chinese government
is seeking to add energy production capacity from sources other than coal and
oil, focusing on nuclear and alternative energy development. In 2010-11, China
faced high inflation resulting largely from its credit-fueled stimulus program.
Some tightening measures appear to have controlled inflation, but GDP growth
consequently slowed to near 9% for 2011. An economic slowdown in Europe is
expected to further drag Chinese growth in 2012. Debt overhang from the
stimulus program, particularly among local governments, and a property price
bubble challenge policy makers currently. The government's 12th Five-Year Plan,
adopted in March 2011, emphasizes continued economic reforms and the need to
increase domestic consumption in order to make the economy less dependent on
exports in the future. However, China has made only marginal progress toward
these rebalancing goals.
|
Source
: CIA |
Company name & address
SHENZHEN GUOWEI ELECTRONICS CO., LTD.
NO. 3038, LUOSHA
ROAD, LIANTANG INDUSTRIAL ZONE, LUOHU DISTRICT,
SHENZHEN, GUANGDONG
PROVINCE, 518004 PR CHINA
TEL: 86 (0)
755-25736666*8191 FAX: 86 (0)
755-25732288
EXECUTIVE SUMMARY
INCORPORATION DATE : JULY 16, 1991
REGISTRATION NO. : 440301501122735
REGISTERED LEGAL FORM :
CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE
STAFF STRENGTH : 350
REGISTERED CAPITAL :
CNY 117,760,000
BUSINESS LINE : MANUFACTURING
TURNOVER : CNY 1,014,130,000 (UNaudited, AS OF DEC. 31, 2011)
EQUITIES : CNY -38,750,000 (UNaudited, AS OF DEC. 31, 2011)
PAYMENT : Unknown
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND :
fair
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 July 16, 1991.
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 processing, manufacturing every kind of telephone; add
manage items: manufacturing and managing digital Chinese display and number
display beep pager, household power transformer; selling add managing products
100% to overseas market; add: manufacturing GSM mobile communication phone,
selling add products 60% to overseas market; add: manufacturing and managing
notebook computer, selling add managing products 100% to overseas market.
SC is
mainly engaged in manufacturing and selling fixed-line phones, mobile phones
and other communication terminal equipment.
Mr.
Liang Xiguang is legal representative
and chairman of SC at present.
SC is known to have approx. 350 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 Shenzhen.
SC’s accountant refused to release the detail information the total premise.
http://www.sgwglobal.com/
The
design is professional and the content is well organized. At present it is in English
version.
Email: enquiries@sgwglobal.com
Changes of its
registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
2007-11 |
Company Name |
Shenzhen Top Guowei Electronics Co., Ltd. |
Present one |
|
Registration No. |
102259 |
Present one |
|
|
2011-3 |
Registered capital |
CNY 64,000,000 |
Present amount |
|
Shareholdings |
Xiwei
Electronic (China) Co., Ltd. (in Chinese Pinyin) (Hong Kong 46%; Shenzhen Smart
Victory Investment Co., Ltd. 54% |
Present ones |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Xiwei Electronic (China) Co., Ltd.
(in Chinese Pinyin) (Hong Kong) 25
Shenzhen Smart Victory Investment Co., Ltd. 75
Shenzhen Smart Victory Investment Co., Ltd.
=================================
Registration No. :
440301102766883
Registered Capital :
CNY 10,000,000
l
Legal representative and Chairman:
Mr. Liang Xiguang, Hong Kong citizen. He is
currently responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as chairman and legal representative.
*Officials:
=======
Name Title
Tan Fang Director
Malcolm Paton Director
Zhu Xianjiu Supervisor
SC is
mainly engaged in manufacturing and selling fixed-line phones, mobile phones
and other communication terminal equipment.
Main Products:
Landline (Corded,
Cordless)
Internet Devices
(PC free)
Colombo Netbook
DECT Photo Viewer
Bluetooth DECT
Audio
SC sources its materials 80%
from domestic market, and 20% from overseas market. SC sells 40% of its
products in domestic market, and 60% 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’s
management declined to release its main clients and suppliers.
SC is known to have the following branch:
Shenzhen Guowei Electronics Co., Ltd. Guanlan Branch
Registration
No.: 440306506061872
According to the above website, SC is known to have the
following related companies:
SGW
Electronics Limited (Hong Kong)
Add.:
Unit 20-21, 12/F, Goldfield Industrial Centre, 1 Sui Wo Road, Shatin, Hong Kong
Tel:
+852 2947 0272
Fax:
+852 2947 0271
SGW
(Europe) Ltd
Add.:
67 Maltings Place, 169 Tower Bridge Road, London SE1 3LJ, United Kingdom
Tel:
+44 (0) 20 7403 0201
Fax:
+44 (0) 20 7403 8797
SGW
Meizhou Co., Ltd
Add.:
AD1 Section, Economic Development Area, Dongsheng Industrial District, Meizhou,
Guangdong, China
Tel:
+86 (753) 2299777
Fax:
+86 (753) 2244777
Australian
Associate Office
Add.:
SGW Australia, P.O. Box 697, Bayswater, Victoria 3153, Australia
Tel:
+61(0) 419 346 898
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 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.
Shanghai Pudong
Development Bank Shenzhen Branch
AC#: N/A
Relationship:
Normal
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31,
2010 |
as of Dec. 31,
2011 |
|
Cash & bank |
5,840 |
121,590 |
|
Inventory |
64,570 |
50,490 |
|
Accounts
receivable |
60,190 |
124,110 |
|
Advances to
supplies |
0 |
0 |
|
Other
receivables |
29,180 |
59,160 |
|
Prepaid expenses |
150 |
/ |
|
Other current
assets |
0 |
11,410 |
|
|
------------------ |
------------------ |
|
Current assets |
159,930 |
366,760 |
|
Fixed assets net
value |
135,390 |
211,670 |
|
Projects under
construction |
22,770 |
26,780 |
|
Long-term
investments |
6,100 |
/ |
|
Intangible and
other assets |
0 |
6,000 |
|
|
------------------ |
------------------ |
|
Total assets |
324,190 |
611,210 |
|
|
============= |
============= |
|
Short loans |
96,860 |
207,550 |
|
Accounts payable |
51,380 |
60,220 |
|
Advances from
customers |
0 |
0 |
|
Employee
pay payable |
2,150 |
/ |
|
Taxes payable |
-7,530 |
-7,070 |
|
Other Accounts
payable |
263,040 |
385,520 |
|
Accrued expenses |
0 |
/ |
|
Other
current liabilities |
0 |
3,740 |
|
|
----------------- |
------------------ |
|
Current
liabilities |
405,900 |
649,960 |
|
Long term
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
405,900 |
649,960 |
|
Shareholders
equities |
-81,710 |
-38,750 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
324,190 |
611,210 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31,
2010 |
as of Dec. 31,
2011 |
|
Turnover |
660,350 |
1,014,130 |
|
Cost of goods sold |
605,410 |
990,770 |
|
Sales expense |
16,430 |
12,640 |
|
Management expense |
42,090 |
31,360 |
|
Finance expense |
6,460 |
4,950 |
|
Profit before
tax |
-14,160 |
-10,800 |
|
Less: profit tax |
0 |
0 |
|
Profits |
-14,160 |
-10,800 |
Note: The Financial Report for Year 2011 hasn’t been audited.
Important Ratios
=============
|
|
as of Dec. 31,
2010 |
as of Dec. 31,
2011 |
|
*Current ratio |
0.39 |
0.56 |
|
*Quick ratio |
0.23 |
0.49 |
|
*Liabilities
to assets |
1.25 |
1.06 |
|
*Net profit
margin (%) |
-2.14 |
-1.06 |
|
*Return on
total assets (%) |
-4.37 |
-1.77 |
|
*Inventory
/Turnover ×365 |
36 days |
19 days |
|
*Accounts
receivable/Turnover ×365 |
34 days |
45 days |
|
*Turnover/Total
assets |
2.04 |
1.66 |
|
* Cost of
goods sold/Turnover |
0.92 |
0.98 |
PROFITABILITY:
FAIR
l
The turnover of SC appears fairly good in 2010 and
it increased greatly in 2011.
l
SC’s net profit margin is fair in both years.
l
SC’s return on total assets is fair in both years.
l
SC’s cost of goods sold is high in 2011, comparing
with its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a poor level
in 2010, and fair in 2011.
l
SC’s quick ratio is maintained in a poor level in
2010, and fair in 2011.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears average.
l
SC’s short-term loan appears large in both years.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: POOR
l
The debt ratio of SC is too high.
l
The risk for SC to go bankrupt is high.
Overall financial
condition of the SC: Fair.
SC is considered medium-sized in its line with fair financial
conditions. The large amount of short loans should be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.72 |
|
UK Pound |
1 |
Rs.87.95 |
|
Euro |
1 |
Rs.69.66 |
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 |
|
---- |
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.