MIRA INFORM REPORT
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Report Date : |
10.04.2013 |
IDENTIFICATION DETAILS
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Name : |
ZHEJIANG HUAYI
IMPORT AND EXPORT CO., LTD. |
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Registered Office : |
No. 138, Ningkang West Road, Yuecheng Town, Yueqing,
Zhejiang Province 325600 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
13.05.2004 |
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Com. Reg. No.: |
330382000063176 |
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Legal Form : |
Limited Liabilities Co. |
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Line of Business : |
Engaged in selling electrical products. |
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No. of Employees : |
25 |
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 – 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 and address
ZHEJIANG HUAYI IMPORT AND EXPORT CO., LTD.
NO. 138, NINGKANG WEST ROAD,
YUECHENG TOWN,
YUEQING, ZHEJIANG PROVINCE 325600
PR CHINA
TEL: 86 (0) 577-27898876 FAX: 86 (0) 577-27898866
EXECUTIVE SUMMARY
INCORPORATION DATE : MAY 13, 2004
REGISTRATION NO. : 330382000063176
REGISTERED LEGAL FORM :
LIMITED LIABILITIES CO.
STAFF STRENGTH : 25
REGISTERED CAPITAL : CNY 5,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 50,780,000 (AS OF DEC. 31,
2011)
EQUITIES :
CNY 6,260,000 (AS OF DEC. 31, 2011)
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.24= USD
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
Limited liabilities co. at local Administration for Industry & Commerce
(AIC - The official body of issuing and renewing business license) on May 13,
2004.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders contribute its registered
capital jointly. Shareholders bear limited liability to the extent of
shareholding, and the co. is liable for its debts only to extent of its
total assets. The characteristics of this form of co. are as follows: Upon the establishment of the
co., an investment certificate is issued to the each of shareholders. The board of directors is
comprised of three to thirteen members. The minimum registered capital
for a co. is CNY 30,000. Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology. Cash contributed by all
shareholders must account for at least 30% of the registered capital. Existing shareholders have
pre-exemption right to purchase shares of the co. offered for sale by the
other shareholders and to subscribe for the newly increased registered
capital of the co.
SC’s registered business scope includes selling hardware, wires,
cables & accessories, auto parts and accessories, household appliances,
daily necessaries, water conservancy & hydropower equipment, solar equipment,
generators, motors, transformers, rectifiers, inductors, capacitors &
supporting equipment, power distribution switch control equipment, power
electronic components, other power distribution and control equipment, other
machinery equipment & electronic products, other chemical products;
importing and exporting commodities and technologies; text translation;
wholesale of trade manage and agency.
SC is
mainly engaged in selling electrical products.
Mr.
Chen Daorong is legal representative and chairman of SC at present.
SC is
known to have approx. 25 employees at present.
SC is currently operating at the above stated address, and
this address houses its operating office in Yueqing. Our checks reveal that SC
rents the total premise about 150 square meters.
SC is not known to host web site of its own at present.
No significant events or changes were found during our
checks with the local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name
% of Shareholding
Huayi Electric Apparatus Group
Co., Ltd. 52.2
Li Weiming 24.0
Chen Menglie 10.0
Other individuals 13.8
Huayi Electric Apparatus Group
Co., Ltd.
==============================
Registered no.: 330382000043559
Legal representative: Chen
Daorong
Incorporation date: Sep. 12,
1997
Registered capital: CNY
120,000,000
Tel: 0577-62666666
Fax: 0577-62533888
Add: Yanpanxin Road, Economic
Development Zone, Yueqing, Zhejiang Province
Web: http://www.heag.com/
Email: heag@heag.com
l Legal
representative and Chairman:
Mr. Chen Daorong, born in 1956,
with university education. He is currently responsible for the overall
management of SC.
Working Experience(s):
At present Working in SC as legal
representative and chairman;
Also working in
Huayi Electric Apparatus Group Co., Ltd., Huayi Electric Company Limited, Huayi
Investment Holding Co., Ltd., Zhejiang HeWind Co., Ltd., Zhejiang Huayi
Kangdisi Solar Technology Co., Ltd., etc. as legal representative
SC is
mainly engaged in selling electrical products.
SC’s products mainly include switchgear, circuit breakers,
etc.
SC
sources its merchandise 60% from domestic market and 40% from overseas market. SC
sells 30% of its products in domestic market and 70% 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 declined to release its major suppliers and clients.
Huayi Electric Company Limited
…………………………………..
It is listed in Shanghai Stock Exchange Market with the stock code
600290.
Registered no.: 330000000016512
Legal representative: Chen Daorong
Incorporation date: Dec. 31,
1998
Registered capital: CNY
526,884,000
Website: http://www.huayi.com/
Tel: 0577-62661122
Fax: 0577-62237777
Huayi Investment Holding Co., Ltd.
……………………………………..
Registered no.: 330382000051403
Legal representative: Chen
Daorong
Incorporation date: Mar. 1, 2007
Zhejiang HeWind Co., Ltd.
……………………………
Registered no.: 330382000085647
Legal representative: Chen
Daorong
Incorporation date: Mar. 29,
2002
Zhejiang Huayi Kangdisi Solar Technology Co., Ltd. (in Chinese
Pinyin)
……………………………………………………………………………..
Registered no.: 330000000037437
Legal representative: Chen
Daorong
Incorporation date: Apr. 13,
2009
Etc.
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’s
accountant refused to release the bank details.
Balance
Sheet
Unit:
CNY’000
|
|
As of Dec. 31, 2010 |
As of Dec. 31, 2011 |
|
Cash
& bank |
5,040 |
3,040 |
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Inventory |
110 |
350 |
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Accounts
receivable |
26,930 |
22,360 |
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Advances
to suppliers |
810 |
8,550 |
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Other
receivables |
1,870 |
4,160 |
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Other
current assets |
2,880 |
2,160 |
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|
------------------ |
------------------ |
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Current
assets |
37,640 |
40,620 |
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Fixed
assets net value |
210 |
600 |
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Long
term investment |
0 |
0 |
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Projects
under construction |
0 |
0 |
|
Intangible
and other assets |
190 |
90 |
|
|
------------------ |
------------------ |
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Total
assets |
38,040 |
41,310 |
|
|
=========== |
=========== |
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Short
loan |
1,520 |
0 |
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Accounts
payable |
29,290 |
24,780 |
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Advances
from clients |
0 |
7,810 |
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Taxes
payable |
200 |
130 |
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Other
Accounts payable |
240 |
250 |
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Other
current liabilities |
1,110 |
2,080 |
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------------------ |
------------------ |
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Current
liabilities |
32,360 |
35,050 |
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Long
term liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
32,360 |
35,050 |
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Equities |
5,680 |
6,260 |
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------------------ |
------------------ |
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Total
liabilities & equities |
38,040 |
41,310 |
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=========== |
=========== |
Income
Statement
Unit:
CNY’000
|
|
As of Dec. 31, 2010 |
As of Dec. 31, 2011 |
|
Turnover |
66,890 |
50,780 |
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Cost of goods sold |
54,930 |
43,870 |
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Sales expense |
10,190 |
4,290 |
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Management expense |
750 |
1,070 |
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Finance expense |
210 |
1,110 |
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Profit before tax |
1,010 |
760 |
|
Less: profit tax |
250 |
190 |
|
Profits |
760 |
570 |
Important Ratios
=============
|
|
As of Dec. 31, 2010 |
As of Dec. 31, 2011 |
|
*Current
ratio |
1.16
|
1.16
|
|
*Quick
ratio |
1.16
|
1.15
|
|
*Liabilities
to assets |
0.85
|
0.85
|
|
*Net
profit margin (%) |
1.14
|
1.12
|
|
*Return
on total assets (%) |
2.00
|
1.38
|
|
*Inventory
/Turnover ×365 |
1
day |
3
days |
|
*Accounts
receivable/Turnover ×365 |
147
days |
161
days |
|
*Turnover/Total
assets |
1.76
|
1.23
|
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*
Cost of goods sold/Turnover |
0.82
|
0.86
|
PROFITABILITY:
AVERAGE
l The
turnover of SC appears average in its line, but it decreased in 2011.
l SC’s
net profit margin is average in both years.
l SC’s
return on total assets is average in both years.
l
SC’s cost of goods sold is average in
both years, comparing with its turnover.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained
in a normal level in both years.
l
SC’s quick ratio is maintained in a
normal level in both years.
l
The inventory of SC appears small in
both years.
l
The accounts receivable of SC appears
large in both years.
l
There is no short-term loan of SC in
2011.
l
SC’s turnover is in an average level,
comparing with the size of its total assets in both years.
LEVERAGE:
FAIR
l
The debt ratio of SC is high.
l
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
|
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 |
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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 |
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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.