MIRA
INFORM REPORT
|
Report Date : |
18.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
ZHEJIANG YANKON GROUP CO., LTD. |
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|
|
|
Registered Office : |
No. 485 Fengshan
Road, Shangyu, Zhejiang Province, 312300 Pr |
|
|
|
|
Country : |
China |
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|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
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Date of Incorporation : |
16.07.1997 |
|
|
|
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Com. Reg. No.: |
330000000009109 |
|
|
|
|
Legal Form : |
Shares Limited
Company |
|
|
|
|
Line of Business : |
manufacturing and selling lighting appliances |
|
|
|
|
No. of Employees : |
7,586 |
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 : |
Good |
|
Payment Behaviour : |
No Complaints |
|
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 (31.03.2011) |
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 2012 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 under 8% for 2012. An economic slowdown in Europe contributed to
China's, and is expected to further drag Chinese growth in 2013. 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
ZHEJIANG YANKON
GROUP CO., LTD.
NO. 485 FENGSHAN ROAD, SHANGYU, ZHEJIANG PROVINCE, 312300 PR CHINA
TEL: 86 (0) 575-82027720/ 82218580
FAX: 86 (0) 575-82027720/82215355
EXECUTIVE SUMMARY
INCORPORATION DATE : JUL. 16, 1997
REGISTRATION NO. : 330000000009109
REGISTERED LEGAL
FORM : SHARES LIMITED COMPANY
STAFF STRENGTH : 7,586
REGISTERED CAPITAL :
cny 645,379,000
BUSINESS LINE : MANUFACTURING &
selling
TURNOVER : CNY
2,354,434,000 (Consolidated, As of DEC. 31, 2011)
EQUITIES : CNY
1,390,336,000 (Consolidated, As of DEC. 31, 2011)
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION
: STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : well-known
EXCHANGE RATE :
CNY 6.35 = 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
Note: SC’s correct operating address should be the heading
one
The (6F, Yuanshan Building Heshan Road Huli District Xiamen,
China is Xiamen Leedarson Lighting Co. Ltd. former registered address. And it
has no company locates here at present.
SC was registered as a Shares limited co. at
Zhejiang Provincial Administration for industry & commerce (AIC - the
official body of issuing and renewing business license).
Company Status: Shares limited co. This form of business in PR
China is defined as a legal person. Its registered capital is divided into
shares of equal par value and the co. raises capital by issuing share
certificates by promotion or by public offer. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to the extent of its total assets. The co has independent
property of legal person and enjoys property rights of legal person. The characteristics of the shares limited co. are as
follows: The establishment of the co.
requires at least two promoters and no more than 200, half of whom shall be domiciled
in The minimum registered capital
of a co. is CNY The board of directors must
consist of five to nineteen directors. If the co. raises capital by public
offer, the promoters must not subscribe less than 35% of the total shares. the
promoters’ shares are restricted to transfer- within one year of the offer.
A state-owned enterprise that
is restructured into a shares limited co. must comply with the conditions
& requirements specified under the law & administrative rule.
SC’s registered business scope includes design, development,
manufacturing, sales and service of lighting appliances, electrical, electrical
appliances and raw and auxiliary materials, components, apparatus, equipment;
design and installation of lighting system, energy saving and environmental
protection projects to undertake and comprehensive technical services; import
and export business and foreign economic cooperation operations (see the scope
of foreign trade and economic cooperation approvals).
SC is mainly
engaged in manufacturing and selling lighting appliances.
Mr. Chen Senjie
has been the legal representative and chairman of SC since 2003.
SC is known
to have approx. 7,586 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 Shangyu. SC’s management
declined to release the detailed information of the premise.
www.yankon.com/en The design is
professional and the content is well organized. At present it is both in
Chinese and English versions.
Email: ygjt@yankon.com
SC is a listed company in Shanghai Stock Exchange Market with the code
of 600261.
Tax Registration Certificate No.: 330682146150706
Organization Code: 14615070-6
Changes
of its registered information:
|
Date
of change |
Item |
Before the
change |
After the change |
|
|
Registered capital |
CNY 83,160,000 |
CNY 123,160,000 |
|
|
Registered capital |
CNY 123,160,000 |
CNY 147,792,000 |
|
|
Registered capital |
CNY 147,792,000 |
CNY 192,129,600 |
|
|
Registered capital |
CNY 192,129,600 |
CNY 249,768,480 |
|
|
Registered capital |
CNY 249,768,480 |
cny 374,652,720 |
|
|
Chinese Name |
浙江阳光集团股份有限公司 |
Present one |
|
Unspecified |
Registered capital |
cny 374,652,720 |
Present amount |
|
Registered No. |
3300001001184 |
Present one |
Note: SC changed its Chinese name in 2011, while its English name
remains the same.
MAIN SHAREHOLDERS:
(As of Mar. 23, 2012)
Name % of Shareholding
Century Yankon Holding Group Co., Ltd. 32.14
Chen Senjie 5.99
Chen Yueming 4.23
Hangzhou Yi’an Investment Co., Ltd. (literal
translation) 3.41
China Construction Bank- Guotai Jinding Value
Selective
Mixed Securities Investment Fund (literal
translation) 3.02
Bank of Communications-Hua’an Strategy
Selective Stock
Securities Investment Fund (literal
translation) 2.71
Zhejiang Zhenli Information & Technology
Co., Ltd.
(literal translation) 2.12
National Social Security Fund 504
Combination
(literal translation) 1.86
Shangyu Lihai Town Collective
Asset Management Company
(literal translation) 1.5
Orient Securities Asset Management Co., Ltd.
- China Merchants Bank –
Dongfanghong - Xinrui No. 1 Collective Asset
Management Plan 1.42
Other shareholders 41.6
Century Yankon Holding Group Co., Ltd.
==============================
Registration No.: 330682000039332
Chairman: Chen Wei
Legal Representative
and Chairman:
Mr. Chen Senjie, born in 1949, with bachelor’s degree, senior engineer, he is currently responsible for the overall management of SC.
Working
Experience(s):
From 2003 to present Working in SC as legal representative and chairman.
Vice Chairman:
Mr. Chen Wei, born in 1975, with bachelor’s degree, he is currently
responsible for the overall management of SC.
Working
Experience(s):
At present Working in SC
as vice chairman.
Also
working in Century Yankon Holding Group Co., Ltd., Zhejiang Yankon Lighting
Co., Ltd. as legal representative, etc.
General Manager:
Mr. Guan Yong, born in 1974, with
master’s degree, he is currently responsible for the daily management of SC.
Working
Experience(s):
At present Working in SC as general manager.
Vice General
Manager:
Wu Feng
Wu Guoming
Wu Qingyi
Zhang Jianzhong
*Officials:
=======
Name Title
Chen Yansheng Independent
Director
Li Guang’an Independent Director
Shao Shaomin Independent
Director
Dong Xusheng Chief
Financial Officer
Chen Yueming Supervisor
Chen Zhigang Employee Supervisor
Yu Xuelan Supervisor
SC is mainly
engaged in manufacturing and selling lighting appliances.
SC’s products
mainly include: compact fluorescent series, lighting fixture series, high
intensity discharged series and LED series, etc.
SC sources its materials 70% from domestic
market, and 30% from overseas market. SC sells
76% of its products in domestic market, and 24% to overseas market, mainly to
Asia countries (excluding China), European Countries and Latin America.
The buying terms of SC include Check, T/T, T/C and Credit of
30-60 days. The payment terms of SC include Check, T/T, T/C and Credit of 30-60
days.
Major Customers
============
Philips Consumer Luminaires (Shenzhen) Co., Ltd.
Philips (China) Investment Co., Ltd.
Subsidiaries
=========
Zhejiang
Yankon Lighting Co., Ltd.
Shanghai
Sen'enpu Lighting Apparatus Co., Ltd.
Zhejiang
Yankon Import & Export Co., Ltd.
Xiamen
Yankon Energetic Lighting Co., Ltd.
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.
No bank
information was found during our checks with the local Administration for
Industry and Commerce. And SC declined to release its banking details.
Consolidated
Balance Sheet
Unit: CNY’000
|
|
as
of Dec. 31, 2011 |
as of Dec. 31,
2010 |
|
Cash & bank |
468,310 |
473,903 |
|
Inventory |
783,263 |
459,265 |
|
Trading
financial assets |
1,128 |
2,654 |
|
Accounts receivable |
650,016 |
585,652 |
|
Notes receivable |
274 |
9,564 |
|
Advances to
supplies |
49,806 |
27,391 |
|
Interest
receivable |
0 |
68 |
|
Other
receivables |
35,794 |
40,116 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
1,988,591 |
1,598,613 |
|
Fixed assets net
value |
734,607 |
648,515 |
|
Projects under
construction |
118,096 |
107,325 |
|
Long-term
investments |
113,612 |
120,180 |
|
Deferred
assets debits |
23,876 |
18,870 |
|
Long-term
deferred expenses |
2,327 |
1,994 |
|
Intangible
assets |
182,400 |
170,006 |
|
Goodwill |
0 |
0 |
|
Other assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
3,163,509 |
2,665,503 |
|
|
============= |
============= |
|
Short loans |
274,143 |
92,240 |
|
Accounts payable |
520,164 |
571,188 |
|
Other Accounts
payable |
82,088 |
85,863 |
|
Notes payable |
255,570 |
142,879 |
|
Advances from
clients |
58,311 |
58,801 |
|
Taxes payable |
46,772 |
44,001 |
|
Interest payable |
1,209 |
776 |
|
Accrued payroll |
86,793 |
77,860 |
|
Non-current
assets due with in one year |
100,097 |
260,092 |
|
Other
current liabilities |
0 |
0 |
|
|
----------------- |
----------------- |
|
Current
liabilities |
1,425,147 |
1,333,700 |
|
Long term
liabilities |
348,026 |
141,073 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
1,773,173 |
1,474,773 |
|
Shareholders
equities |
1,390,336 |
1,190,730 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
3,163,509 |
2,665,503 |
|
|
============= |
============= |
Consolidated Income
Statement
Unit: CNY’000
|
|
as
of Dec. 31, 2011 |
as of Dec. 31,
2010 |
|
Turnover |
2,354,434 |
2,170,444 |
|
Cost of goods
sold |
1,859,589 |
1,767,639 |
|
Taxes
and additional of main operation |
7,474 |
8,820 |
|
Sales expense |
108,479 |
104,524 |
|
Management expense |
209,375 |
165,174 |
|
Finance expense |
35,917 |
25,959 |
|
Investment
income |
2,751 |
10,346 |
|
Changes in fair
value |
-1,527 |
2,654 |
|
Asset impairment loss |
13,390 |
14,521 |
|
Non-operating
income |
141,881 |
120,917 |
|
Non-operating expense |
3,793 |
7,218 |
|
Operation Profit |
259,522 |
210,506 |
|
Less: profit tax |
39,183 |
30,102 |
|
Net profit |
220,339 |
180,404 |
Important Ratios
=============
|
|
as
of Dec. 31, 2011 |
as of Dec. 31,
2010 |
|
*Current ratio |
1.40 |
1.20 |
|
*Quick ratio |
0.85 |
0.85 |
|
*Liabilities
to assets |
0.56 |
0.55 |
|
*Net profit
margin (%) |
9.36 |
8.31 |
|
*Return on
total assets (%) |
6.97 |
6.77 |
|
*Inventory /Turnover
×365 |
122 days |
78 days |
|
*Accounts
receivable/Turnover ×365 |
101 days |
99 days |
|
*Turnover/Total
assets |
0.74 |
0.81 |
|
* Cost of
goods sold/Turnover |
0.79 |
0.81 |
PROFITABILITY: FAIRLY GOOD
·
The
turnover of SC appears good in its line in both years.
SC’s net profit margin is fairly good in both years.
SC’s return on total assets is fairly good in both
years,
SC’s cost of goods sold is average, comparing with its
turnover.
LIQUIDITY: AVERAGE
· The current ratio of SC is maintained in a normal level in both years.
SC’s
quick ratio is maintained in a normal level in both years.
The
inventory of SC appears fairly large in
both years.
The
accounts receivable of SC appears fairly
large in both years.
SC’s
short-term loan appears average in both
years.
SC’s
turnover is fair in both years, comparing with the size of its total assets.
LEVERAGE: AVERAGE
· The debt ratio of SC is average in both years.
The
risk for SC to go bankrupt is low.
Overall financial condition of the SC:
Stable.
SC is considered large-sized in
its line with stable financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.94 |
|
UK Pound |
1 |
Rs.82.76 |
|
Euro |
1 |
Rs.71.04 |
INFORMATION DETAILS
|
Report Prepared
by : |
PRL |
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.