MIRA INFORM REPORT

 

 

Report Date :

13.04.2013

 

IDENTIFICATION DETAILS

 

Name :

LEOCH BATTERY (JIANGSU) CORP.

 

 

Registered Office :

North Of Shenhua Avenue (West Of Tongtai Road), Jinhu Industry Zone, Huai’an City, Jiangsu Province 211600 Pr

 

 

Country :

China

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

11.03.2003

 

 

Com. Reg. No.:

320800400001312

 

 

Legal Form :

Wholly Foreign-Owned Enterprise

 

 

Line of Business :

manufacturing and selling maintenance-free lead-acid batteries, nickel hydrogen batteries, lithium batteries, nickel cadmium batteries, charger

 

 

No. of Employees :

3076

 

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 

 

 

Payment Behaviour :

Regular

 

 

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)

China

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

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

 

Leoch Battery (Jiangsu) Corp.

north of shenhua avenue (west of tongtai road), jinhu industry zone, huai’an city, JIANGSU PROVINCE 211600 PR CHINA

TEL: 86 (0) 517-86986326

FAX: 86 (0) 517-86986330

 

EXECUTIVE SUMMARY

 

Date of Registration          : march 11, 2003

REGISTRATION NO.                  : 320800400001312

LEGAL FORM                           : Wholly foreign-owned enterprise

CHIEF EXECUTIVE                    : qian guanghong (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL             : usd 34,245,210

staff                                      : 3,076

BUSINESS CATEGORY             : MANUFACTURING

Revenue                                : CNY 2,004,367,000 (AS OF DEC. 31, 2012)

EQUITIES                                 : CNY 486,138,000 (AS OF DEC. 31, 2012)

WEBSITE                                 : www.leoch.com

E-MAIL                                     : N/A

PAYMENT                                : AVERAGE

MARKET CONDITION                : COMPETITIVE

FINANCIAL CONDITION             : fairly good

OPERATIONAL TREND              : STEADY

GENERAL REPUTATION           : AVERAGE

EXCHANGE RATE                     : CNY 6.21 = USD 1

 

 

Adopted abbreviations (as follows)

SC - Subject Company (the company inquired by you)

N/A – Not available

CNY – China Yuan Ren Min Bi

 

 

OPERATIONAL TREND & GENERAL REPUTATION

 

This section aims at indicating the relative positions of SC in respect of its operational trend & general reputation

 

Operational Trend:-                                             General Reputation:-

Upward                                                             Excellent

Steady                                                              Good

Fairly Steady                                                     Fairly Good

Ordinary                                                            Average

Fair                                                                   Fair

Stagnant                                                           Detrimental

Downward                                                         Not known

Not known                                                         Not yet be determined

 

 

LEGAL STATUS & HISTORY

 

***Note: The given telephone No. (0086 755 26067200/26067269/26067217) belongs to SC’s subsidiary.

 

SC was established as a wholly foreign-owned enterprise of PRC with State Administration of Industry & Commerce (SAIC) under registration No.: 320800400001312 on March 11, 2003.

 

SC’s Organization Code Certificate No.: 74682524-4

SC’s Tax No.: 320831746825244

 

SC’s Customs Registration No.: 3208940029

 

SC’s registered capital: usd 34,245,210

 

SC’s paid-in capital: usd 34,245,210

 

Registration Change Record:-

 

Date

Change of Contents

Before the change

After the change

--

Legal Representative

Peng Hui

 

Qian Guanghong

 

 

Current Co search indicates SC’s shareholders & chief executives are as follows:-

 

Name of Shareholder (s)

% of Shareholding

Leoch Power Supply (H.K.) Limited

100

 

SC’s Chief Executives:-

Position

Name

Legal Representative and Chairman

Qian Guanghong

General Manager

Yin Haiyan

 

RECENT DEVELOPMENT

 

No recent development was found during our checks at present.

 

 

SHAREHOLDER CHART & BACKGROUND

 

 

Name                                                                                      % of Shareholding

*         Leoch Power Supply (H.K.) Limited                                      100

------------------------------------

CR No.: 0917474

Legal Form: Private

 

 

MANAGEMENT

 

Qian Guanghong, Legal Representative and Chairman

----------------------------------------------------------------------------------

Ø         Gender: M

Ø         Mobile: 86 (0) 18915195008

Ø         Qualification: University

Ø         Working experience (s):

 

At present, working in SC as legal representative and chairman

 

Yin Haiyan, General Manager

---------------------------------------------------

Ø         Gender: F

Ø         Qualification: University

Ø         Working experience (s):

 

Before, worked in SC as deputy general manager

At present, working in SC as general manager

 

 

BUSINESS OPERATION

 

SC’s registered business scope includes designing, developing and manufacturing maintenance-free lead-acid batteries, nickel hydrogen batteries, lithium batteries, nickel cadmium batteries, charger, controller and related injection molding, mold, auto parts, electric cars and its accessories, railway rolling stock battery accessories, electrical and mechanical equipment and accessories, emergency light, selling its owned products, recycling of end-of-life battery, battery installation and commissioning, technical support and technical advice of battery temperature control cabinets, energy-saving services.

 

SC is mainly engaged in manufacturing and selling maintenance-free lead-acid batteries, nickel hydrogen batteries, lithium batteries, nickel cadmium batteries, charger.

 

Brand:

 

SC’s products mainly include:

Automobile Battery

Motorcycle Battery

Traction Battery

AGM Sweeper Battery

Golf Cart Battery

Etc.

SC sources its materials 100% from domestic market. SC sells 58% of its products in domestic market, and 42% to overseas market, mainly USA, Europe, Mid East, Southeast Asia, etc.

 

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.

 

*Major Customers:

==============

Leoch Battery Corp.

Exide Technologies

Viridian Motor Corporation

 

Staff & Office:

--------------------------

SC is known to have approx. 3,076 staff at present.

 

SC owns an area as its operating office & factory of approx. 187,600 sq. meters at the heading address.

 

 

 

RELATED COMPANY

 

SC is known to have 2 subsidiaries at present,

 

n         Dongguan Leoch Battery Technology Co., Ltd.

------------------------------------------

Date of Registration: November 27, 2002

Registration No.: 441900000103854

Legal Form: Limited Liabilities Company

Chief Executive: Dong Zhonghua

Registered Capital: CNY 3,500,000

 

n         Shenzhen Leoch Battery Technology Co., Ltd.

---------------------------------------

Date of Registration: April 26, 1999

Registration No.: 440306102827716

Legal Form: Limited Liabilities Company

Chief Executive: Dong Zhonghua

Registered Capital: CNY 20,000,000

 

PAYMENT

 

Overall payment appraisal:

( ) Excellent      ( ) Good      (X) Average      ( ) Fair      ( ) Poor      ( ) Not yet be 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.

 

 

BANKING

 

The bank information of SC is not filed in SAIC.

 

 

 

FINANCIALS

 

Financial Summary

Unit: CNY’000

As of Dec. 31, 2012

Long term investment

23,500

Total assets

2,149,893

 

-------------

Long term liabilities

412,723

Total liabilities

1,663,755

Equities

486,138

 

-------------

Revenue

2,004,367

Profit before tax

56,274

Less: profit tax

8,441

Profits

47,833

 

Note: The detailed financials for Y2012 are not available in SAIC.

 

Important Ratios

=============

 

As of Dec. 31, 2012

*Liabilities to assets

0.77

*Net profit margin (%)

2.39

*Return on total assets (%)

2.22

* Revenue/Total assets

0.93

 

 

FINANCIAL COMMENTS

 

PROFITABILITY: FAIRLY GOOD

l         The revenue of SC appears good in its line.

l         SC’s net profit margin is average.

l         SC’s return on total assets is average.

 

LIQUIDITY: AVERAGE

l         SC’s revenue is in an average level, comparing with the size of its total assets.

 

LEVERAGE: AVERAGE

l         The debt ratio of SC is average.

l         The risk for SC to go bankrupt is average.

 

Overall financial condition of the SC: Fairly Good.

 

 

CONCLUSIONS

 

SC is considered large-sized in its line with fairly good financial conditions.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.44

UK Pound

1

Rs.83.78

Euro

1

Rs.71.33

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.