MIRA
INFORM REPORT
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Report Date : |
10.04.2013 |
IDENTIFICATION DETAILS
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Name : |
HUSQVARNA ZENOAH CHANGZHOU MACHINERY CO.,
LTD. |
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Registered Office : |
No. 366, Huanghe West Road, Xinbei District, Changzhou,
Jiangsu Province 213022 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
25.05.1999 |
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Com. Reg. No.: |
320400400004732 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
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No. of Employees : |
255 |
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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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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 |
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.
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Source : CIA |
Company name & address
HUSQVARNA ZENOAH CHANGZHOU
MACHINERY CO., LTD.
NO. 366, HUANGHE WEST ROAD, XINBEI DISTRICT,
CHANGZHOU, JIANGSU PROVINCE 213022 PR CHINA
TEL: 86 (0) 519-85103888/
89857509 FAX: 86 (0) 519-85112656
EXECUTIVE SUMMARY
INCORPORATION DATE : MAY 25, 1999
REGISTRATION NO. : 320400400004732
REGISTERED LEGAL FORM :
WHOLLY FOREIGN-OWNED ENTERPRISE
STAFF STRENGTH : 255
REGISTERED CAPITAL : USD 11,300,000
BUSINESS LINE : MANUFACTURING
TURNOVER : CNY 517,560,000 (UNAUDITED, AS OF DEC. 31,
2012)
EQUITIES : CNY
222,950,000 (UNAUDITED, AS OF DEC. 31, 2012)
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.20= 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 wholly foreign-owned enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on May 25, 1999.
Company Status:
Wholly foreign-owned enterprise This
form of business in PR China is defined as a legal person. It is a limited
co. established within the territories of PR China with capital provided
totally by the foreign investors. More than one foreign investor may
jointly invest in a wholly foreign-owned enterprise. The investing
party/parties solely exercise management, reap profit and bear risks and
liabilities by themselves. This form of companies usually have a limited
duration is extendible upon approval of Examination and Approval
Authorities.
SC’s registered
business scope includes manufacturing agricultural & garden machinery,
small gasoline engine and hydraulic machinery and construction machinery parts;
importing and wholesaling agricultural & garden machinery; exporting
agricultural & garden machinery parts; technical advisory and after-sale
service; selling self-made commodities.
SC is mainly
engaged in manufacturing and selling machinery products.
Mr. Ulf Peter
Mikael Liljedahl is the legal representative and chairman of SC at present.
SC is known to
have approx. 255 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 Changzhou. Our checks
reveal that SC owns the total premise, but SC’s accountant refused to release
the gross area.
http://www.zenoah.cn/
the website is unable
to be landed at present.
SC’s former legal representative was Mr. Tufei Daodian (in
Chinese Pinyin), and he was taken place by Mr. Ulf Peter Mikael Liljedahl.
MAIN
SHAREHOLDERS:
Name %
of Shareholding
(Japan) Husqvarna Zenoah Co., Ltd. 100
Husqvarna Zenoah Co., Ltd. is the leading
manufacturer of Outdoor Power Equipment in Japan. Now Zenoah has joined the
Husqvarna Outdoor Products group, the world's leading producer of innovative
solutions for outdoor power equipments.
Capital: JPY 500,000,000
President: Yasurou Watanabe
Add: 1-9 Minamidai Kawagoe Saitama 350-1165
Japan
Legal
representative and chairman:
Mr. Ulf Peter Mikael Liljedahl, Swede. He is currently responsible for
the overall management of SC.
Working
Experience(s):
At present Working in SC as legal representative and
chairman.
General Manager
& Director:
Mr. Michael Allen Richards Jr is currently responsible for the daily management
of SC.
Working
Experience(s):
At present Working in SC as general manager and
director.
Director:
Mo Haiyan
Supervisor:
Per Olov Albert Wallen
SC is mainly engaged
in manufacturing and selling machinery products.
SC’s products
mainly include: shredders, brush cutters, etc.
SC sources its
materials 70% from domestic market and 30% from overseas market. SC sells 20%
of its products in domestic market, and 80% to the 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 T/T, Check, L/C and Credit of 30-60 days.
Note: SC’s management declined to release
its customer and supplier details.
SC
is not known to have any subsidiary at present.
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.
China
Construction Bank Changzhou Xinbei Sub-branch
AC#:
32001628436051264339
Relationship:
Normal
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
Cash & bank |
57,070 |
128,560 |
|
Inventory |
73,120 |
73,240 |
|
Accounts
receivable |
111,150 |
62,120 |
|
Advances to
suppliers |
2,650 |
1,840 |
|
Other
receivables |
2,080 |
1,140 |
|
Other current
assets |
110 |
60 |
|
|
------------------ |
------------------ |
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Current assets |
246,180 |
266,960 |
|
Fixed assets net
value |
81,200 |
75,260 |
|
Projects under
construction |
100 |
10 |
|
Long term
investment |
0 |
0 |
|
Long-term deferred
expenses |
10,640 |
9,850 |
|
Other assets |
570 |
330 |
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|
------------------ |
------------------ |
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Total assets |
338,690 |
352,410 |
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|
============= |
============= |
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Short loans |
0 |
0 |
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Accounts payable |
75,090 |
49,200 |
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Advances from
clients |
1,120 |
30 |
|
Salaries payable |
1,110 |
1,370 |
|
Welfare payable |
1,540 |
1,540 |
|
Taxes payable |
-8,010 |
-2,270 |
|
Other payable |
11,260 |
12,150 |
|
Accrued expenses |
1,470 |
2,960 |
|
Estimated
liabilities |
1,810 |
1,690 |
|
Long-term
liabilities due with in one year |
63,300 |
390 |
|
Other current
liabilities |
0 |
80 |
|
|
------------------ |
------------------ |
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Current
liabilities |
148,690 |
67,140 |
|
Long term
liabilities |
0 |
62,320 |
|
|
------------------ |
------------------ |
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Total
liabilities |
148,690 |
129,460 |
|
Equities |
190,000 |
222,950 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
338,690 |
352,410 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31,
2012 |
|
Turnover |
517,560 |
|
Cost of goods
sold |
458,000 |
|
Taxes
and additional of main operation |
1,260 |
|
Sales expense |
3,540 |
|
Management expense |
10,160 |
|
Finance expense |
-580 |
|
Profit before
tax |
45,390 |
|
Less: profit tax |
11,340 |
|
Profits |
34,050 |
Note: The above financial for Year 2012
have not been audited.
Important Ratios
=============
|
|
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
*Current ratio |
1.66 |
3.98 |
|
*Quick ratio |
1.16 |
2.89 |
|
*Liabilities
to assets |
0.44 |
0.37 |
|
*Net profit
margin (%) |
/ |
6.58 |
|
*Return on
total assets (%) |
/ |
9.66 |
|
*Inventory
/Turnover ×365 |
/ |
52 days |
|
*Accounts
receivable/Turnover ×365 |
/ |
44 days |
|
*Turnover/Total
assets |
/ |
1.47 |
|
* Cost of
goods sold/Turnover |
/ |
0.88 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in 2012.
l
SC’s net profit margin is fairly good in 2012.
l
SC’s return on total assets is fairly good in 2012.
l
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a fairly
good level in 2012.
l
SC’s quick ratio is maintained in a fairly good
level in 2012.
l
The inventory of SC appears average in both years.
l
The accounts receivable of SC appears average in
2012.
l
SC has no short-term loan in both years.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is low in both years.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Stable.
SC is considered medium-sized in its line with stable
financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.46 |
|
UK Pound |
1 |
Rs.83.13 |
|
Euro |
1 |
Rs.70.99 |
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 |
|
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.