MIRA
INFORM REPORT
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Report Date : |
13.08.2013 |
IDENTIFICATION DETAILS
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Name : |
NINGBO MAYYARD PHOTOELECTRICITY CO., LTD. |
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Registered Office : |
2nd Floor, No. 232 Penglai Road, Dancheng, Xiangshan County, Ningbo, Zhejiang Province, 315700 PR |
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Country : |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
06.01.2011 |
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Com. Reg. No.: |
330200400053186 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture |
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Line of Business : |
Subject engaged in researching, developing, manufacturing and selling various kinds of high quality SMD LED, High Power LED, Double in-line LED components. |
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No. of Employees : |
350 |
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
|
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 MAYYARD PHOTOELECTRICITY Co., Ltd.
2nd
floor, NO. 232 PENGLAI ROAD, DANCHENG, XIANGSHAN county,
ningbo, zhejiang PROVINCE, 315700 PR CHINA
TEL: 86 (0) 574-65085065/65600600
FAX: 86 (0) 574-65652345/65608805
EXECUTIVE SUMMARY
INCORPORATION DATE : jan. 6, 2011
REGISTRATION NO. : 330200400053186
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE
ENTERPRISE
STAFF STRENGTH :
350
REGISTERED CAPITAL : CNY 20,000,000
BUSINESS LINE :
r & d, Manufacturing, SELLING
TURNOVER :
CNY 10,620,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 4,540,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.12 = 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 is also known as “Ningbo Mayyard Photoelectronics
Science and Technology Co., Ltd.”
SC was registered as a Chinese-foreign equity joint venture
enterprise at local Administration for Industry & Commerce (AIC - The
official body of issuing and renewing business license) on Jan. 6, 2011.
Company Status: Chinese-foreign equity joint venture
enterprise This form of business in PR
China is defined as a legal person. It is a limited co. jointly invested by
one or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of
capital investment. The investing parties exercise business management,
share profits and bear all risks and liabilities of the co. together. The
equity joint venture law requires that foreign party contribute not less
than 25% of the registered capital, with no maximum. The investing parties
are free to agree on method of profit distribution and liabilities bearing
according to the proportion of capital investment. Each investing parties
contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has a
limited duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition
position in international market may extend beyond the 50 years limit.
SC’s registered
business scope includes production technology research and development of solar
energy equipment; manufacturing and processing of electronic components,
pneumatic parts, lubrication components, mechanical equipment, lighting
equipment; lighting installation.
SC is mainly
engaged in researching, developing, manufacturing and selling various kinds of
high quality SMD LED, High Power LED, Double in-line LED components.
Mr. Wang
Jueyue is legal representative, chairman
and general manager of SC at present.
SC is known
to have approx. 350 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. Detailed
information of the premise is unspecified.
SC
also houses its factory in No. 6 Min’an Road, Beitang Industrial Zone, Juexi,
Xiangshan County, Ningbo
http://www.ledmayyard.com/
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
E-mail: marketing@ledmayyard.com
Certificates
=========
Tax Registration Certificate No.: 330225567011763
Organization Code: 567011763
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Shanghai Yijia Real Estate Co., Ltd.
(literal translation) 35
Duan Lihui 10
Wang Feiya 15
Wang Jueyue 40
Note: The nationality of SC’s individual
shareholders was unspecified in local AIC.
l
Legal Representative, Chairman and General Manager:
Mr. Wang Jueyue 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 Meifei Lighting Co., Ltd. (literal translation)
as legal representative.
*Officials:
=======
Name Title
Wang Feiya Director
Duan Lihui Director
Zhou Chiyue Supervisor
SC is mainly engaged
in researching, developing, manufacturing and selling various kinds of high
quality SMD LED, High Power LED, Double in-line LED components.
SC’s products mainly include: SMD LEDs, Lamp LEDs, High Power LEDs and LED
Module, etc.
SC sources its materials 90% from domestic
market and 10% from overseas market. SC sells 20% of its products in domestic
market, and 80% 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’s management declined to release its major clients and suppliers.
Ningbo Meifei Lighting Co., Ltd. (literal translation)
======================
Registration No.: 330225000095938
Incorporation Date:
Chairman: Wang Jueyue
Registered Capital: CNY 1,000,000
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 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 declined to
release its bank details.
Balance Sheet
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Unit: CNY’000 |
as of Dec. 31, 2011 |
as of Dec. 31, 2012 |
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Cash & bank |
1,170 |
210 |
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Inventory |
2,690 |
7,390 |
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Accounts
receivable |
700 |
3,290 |
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Note receivable |
/ |
/ |
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Advances to
suppliers |
1,380 |
710 |
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Other
receivables |
1,430 |
1,330 |
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Other current
assets |
/ |
/ |
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------------------ |
------------------ |
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Current assets |
/ |
/ |
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Fixed assets net
value |
/ |
/ |
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Long term
investment |
/ |
/ |
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Other assets |
/ |
/ |
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------------------ |
------------------ |
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Total assets |
16,430 |
24,380 |
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============= |
============= |
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Short loans |
/ |
/ |
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Accounts payable |
/ |
/ |
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Note payable |
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Other accounts
payable |
/ |
/ |
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Taxes payable |
/ |
/ |
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Other current
liabilities |
/ |
/ |
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------------------ |
------------------ |
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Current
liabilities |
/ |
/ |
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Long term
liabilities |
/ |
/ |
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------------------ |
------------------ |
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Total
liabilities |
9,900 |
19,840 |
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Equities |
6,530 |
4,540 |
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Total liabilities
& equities |
16,430 |
24,380 |
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Note: SC’s management refused to release the detail of its Balance
Sheet.
Income Statement
|
Unit: CNY’000 |
as of Dec. 31,
2012 |
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Turnover |
10,620 |
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Cost of goods
sold |
9,000 |
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Taxes and
additional of main operation |
10 |
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Other business
profit |
10 |
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Sales expense |
1,280 |
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Management expense |
2,040 |
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Finance expense |
530 |
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Investment
income |
-50 |
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Subsidy income |
70 |
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Non-operating
income |
0 |
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Non-operating expense |
20 |
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Profit before
tax |
-2,230 |
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Less: profit tax |
0 |
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Profits |
-2,230 |
Important Ratios
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as
of Dec. 31, 2011 |
as
of Dec. 31, 2012 |
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*Liabilities
to assets |
0.60 |
0.81 |
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*Net profit
margin (%) |
/ |
-21.00 |
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*Return on
total assets (%) |
/ |
-9.15 |
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*Turnover/Total
assets |
/ |
0.44 |
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* Cost of
goods sold/Turnover |
/ |
0.85 |
PROFITABILITY:
FAIR
l
The turnover of SC appears average in its line in
2012.
l
SC’s net profit margin is poor in 2012.
l
SC’s return on total assets is fair in 2012.
l
SC’s cost of goods sold is average in 2012,
comparing with its turnover.
l
SC’s turnover is fair in 2012, comparing with the
size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is average in 2011 but fairly
high in 2012.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fair.
SC is considered medium-sized in its line with fair financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.80 |
|
|
1 |
Rs.94.21 |
|
Euro |
1 |
Rs.81.03 |
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 |
|
-- |
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.