MIRA INFORM REPORT
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Report Date : |
29.04.2013 |
IDENTIFICATION DETAILS
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Name : |
NINGBO YINZHOU EASTDRAGON ELECTRONIC & TECHNOLOGY CO., LTD. |
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Registered Office : |
Xinlian Village, Industrial Zone of Gaoqiao Town, Yinzhou District, Ningbo, Zhejiang Province, 315174 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
13.04.2004 |
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Com. Reg. No.: |
330212000068116 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing and selling electronic components. |
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No. of Employees : |
178 |
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 : |
Slow |
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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 – March 31st, 2013
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Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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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 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 and address
NINGBO YINZHOU EASTDRAGON ELECTRONIC & TECHNOLOGY CO., LTD.
XINLIAN VILLAGE, INDUSTRIAL ZONE OF GAOQIAO
TOWN, YINZHOU DISTRICT, NINGBO, ZHEJIANG PROVINCE, 315174 PR CHINA
TEL: 86 (0)
574-88271688 FAX: 86 (0) 574-88283965
EXECUTIVE SUMMARY
INCORPORATION DATE :
APR. 13, 2004
REGISTRATION NO. :
330212000068116
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
178
REGISTERED CAPITAL : CNY 500,000
BUSINESS LINE :
MANUFACTURING & SELLING
TURNOVER :
CNY 35,680,000 (UNAUDITED, AS OF
DEC. 31, 2012)
EQUITIES :
CNY 1,050,000 (UNAUDITED, AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE : CNY
6.1673= 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
Note: SC’s correct name shall be the heading
one instead of the given one (Ningbo Yinzhou Eastragon Electric and Technology
Co. Ltd)
SC was registered as a limited liabilities
company at local Administration for Industry & Commerce (AIC - The official
body of issuing and renewing business license) on Apr. 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 development of integrated
circuit boards, computer application software; manufacturing and processing household
appliances, electrical components, timer, auto parts, stamping parts, hardware,
lighting, appliances, mold; import and export of goods and technology,
excluding the goods and technology prohibited or limited by the country.
SC is mainly
engaged in manufacturing and selling electronic components.
Mr. Lin Hangchun
is the legal representative, chairman and general manager of SC at present.
SC is known
to have approx. 178 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 Ningbo. Our checks
reveal that SC owns the total premise, but the gross area is unspecified.
http://cneastsea.cn.ningboexport.com/
The design is professional and the content is well organized. At present it is
in Chinese and English versions.
SC has obtained ISO9001-2000, ISO14001 certificates, etc.
According to the above website, SC was formerly known as Ningbo Yinzhou East Sea Electrical Component Factory.
See below for SC as executive party (defendant).
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Executed Party |
Ningbo Yinzhou Eastdragon Electronic & Technology Co., Ltd. |
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Court |
Ningbo City Yinzhou District People's Court |
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Date
of Case |
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Case Number |
(2008) 00241 |
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Claim
Amount |
CNY 0 |
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Case
Status |
Completed |
Remark: Due to the lack of information, we are unable to provide the cause of action,
judgment or other information.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Lin Hangchun 70
Fu Xujun 30
l Legal
representative, Chairman and General manager:
Mr. Lin Hangchun is currently
responsible for the overall management of SC.
Working Experience(s):
At present Working
in SC as legal representative, chairman and general manager
Also working in Ningbo Yinzhou Aosika Import & Export Co., Ltd. as
legal representative
Supervisor:
…………..
Fu Xujun
SC is mainly
engaged in manufacturing and selling electronic components.
SC’s products mainly
include: series mechanical washing timer, series mechanical double-shafts
washing timer, series electric double-shafts washing timer, series mechanical
spin timer, series electric fan timer, air conditioner timer, automatic washing
machine switch, etc.
SC sources its
materials 100% from domestic market. SC sells 30% of its products in domestic
market, and 70% to the overseas market, mainly Europe, USA, Argentina, Korea,
Japan, Canada, Australia, Mid-east, etc.
The buying terms of SC include Check, T/T 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 major suppliers and clients.
Ningbo Yinzhou Aosika Import & Export Co., Ltd.
(literal translation)
=======================================
Reg.
No.: 330212000009879
Legal
representative: Lin Hangchun
Registered
capital: CNY 500,000
Legal
form: Limited Liabilities Company
Incorporation
date: Aug. 13, 2007
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.
SC’s management
declined to release its banking information.
Balance Sheet
(unaudited)
Unit: CNY’000
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As
of Dec. 31, 2012 |
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Cash & bank |
4,350 |
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Inventory |
14,040 |
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Accounts
receivable |
9,010 |
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Advances to
suppliers |
0 |
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Notes
receivables |
110 |
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Other
receivables |
250 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
27,760 |
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Fixed assets net
value |
12,090 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Intangible
assets |
40 |
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Other assets |
0 |
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------------------ |
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Total assets |
39,890 |
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============= |
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Short loans |
11,550 |
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Accounts payable |
18,040 |
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Advances from
clients |
0 |
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Notes payable |
6,930 |
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Taxes payable |
-200 |
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Welfares payable |
40 |
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Other payable |
2,460 |
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Other payable to
government |
20 |
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Other current
liabilities |
0 |
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------------------ |
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Current
liabilities |
38,840 |
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Long term
liabilities |
0 |
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------------------ |
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Total
liabilities |
38,840 |
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Equities |
1,050 |
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------------------ |
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Total
liabilities & equities |
39,890 |
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============= |
Income Statement (unaudited)
Unit: CNY’000
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As of Dec. 31,
2012 |
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Turnover |
35,680 |
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Cost of goods
sold |
28,660 |
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Taxes and
additional of main operation |
200 |
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Sales expense |
780 |
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Management expense |
5,000 |
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Finance expense |
910 |
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Non-operating
income |
260 |
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Non-operating expenses |
300 |
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Profit before
tax |
90 |
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Less: profit tax |
0 |
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Profits |
90 |
Important Ratios
=============
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As of Dec. 31,
2012 |
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*Current ratio |
0.71 |
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*Quick ratio |
0.35 |
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*Liabilities
to assets |
0.97 |
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*Net profit
margin (%) |
0.31 |
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*Return on
total assets (%) |
0.23 |
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*Inventory
/Turnover ×365 |
144 days |
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*Accounts
receivable/Turnover ×365 |
92 days |
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*Turnover/Total
assets |
0.89 |
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* Cost of goods
sold/Turnover |
0.80 |
PROFITABILITY:
AVERAGE
l The turnover of SC
appears average in its line.
l SC’s net profit
margin is average.
l SC’s return on
total assets is average.
l
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a poor level.
l
The accounts receivable of SC appears average in
2012.
l
The inventory of SC appears large in 2012.
l
The short-term loan of SC appears large in 2012.
l
SC’s turnover is in a fair level, comparing with
the size of its total assets.
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 medium-sized in its line with fairly stable financial
conditions. The large amount of inventory and short-term loan could be the
threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.29 |
|
|
1 |
Rs.83.88 |
|
Euro |
1 |
Rs.70.67 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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 |
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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 |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
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.