MIRA
INFORM REPORT
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Report Date : |
13.08.2013 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
No. 557, Xiahushe, Houkeng Village, Heshan Town, Huli District, Xiamen, Fujian Province, 361009 Pr |
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Country : |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
12.11.2002 |
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Com. Reg. No.: |
350206200002568 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in developing, manufacturing, processing and selling electronic lighting products and parts. |
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No. of Employees : |
200 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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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 – 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
xiamen superlite lighting Co., Ltd.
No. 557, xiahushe,
houkeng village, heshan town, huli district,
xiamen, fujian
PROVINCE, 361009 PR CHINA
TEL: 86 (0)
592-5537621/5571086
FAX: 86 (0)
592-5571081/5537631
EXECUTIVE SUMMARY
INCORPORATION DATE : nov. 12, 2002
REGISTRATION NO. : 350206200002568
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
200
REGISTERED CAPITAL : CNY 5,000,000
BUSINESS LINE :
developing, MANUFACTURING, processing and trading
TURNOVER :
cny 85,740,000 (as of dec. 31, 2012)
EQUITIES :
cny 13,850,000 (as of dec. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.1267 = 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 name should be the heading one.
The given name “Orient Electronics Pvt Ltd.” belongs to SC’s
potential customer.
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 Nov. 12, 2002.
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 developing, manufacturing, processing and selling
electronic lighting products and parts; importing and exporting different sorts
of commodities and technology (do not attach import and export commodities),
but excluding the items limited or forbidden by the state.
SC is mainly
engaged in developing, manufacturing, processing and selling electronic
lighting products and parts.
Mr.
Huang Lifan is legal representative,
chairman and general manager of SC at present.
SC is known to have approx. 200 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 Xiamen. Our checks
reveal that SC rents the total premise about 5,000 square meters.
http://www.xmsuperlite.com/
The design is professional and the content is well organized. At present it is
only in English version.
Email: lfhuang@xmsuperlite.com
; chen@xmsuperlite.com
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Huang Lifan 95
Huang Jinpao 5
l
Legal representative, Chairman and General manager:
Mr. Huang Lifan , born in 1971, with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
At present Working
in SC as legal representative, chairman and general manager.
SC is mainly engaged
in developing, manufacturing, processing and selling electronic lighting
products and parts.
SC’s products
mainly include: orchid lamp, mini bulb, standard full spiral, etc.
SC sources its materials 100% from domestic
market. SC sells 15% of its products in domestic market, and 85% to overseas
market, mainly Pakistan, Brazil, 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 customer and supplier details.
SC
is not known to have any subsidiary at present.
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.
China
Construction Bank Xiamen Ruijing Sub-branch
AC#：35101512001050001548
Relationship:
Normal
Balance
Sheet
Unit: CNY’000
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as of Dec. 31, 2011 |
as of Dec. 31, 2012 |
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Cash & bank |
6,490 |
12,260 |
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Inventory |
3,170 |
5,160 |
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Accounts
receivable |
14,630 |
10,870 |
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Advances to
suppliers |
6,350 |
5,500 |
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Subsidy
receivable |
1,680 |
1,910 |
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Prepaid expenses |
40 |
0 |
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Other
receivables |
3,520 |
1,380 |
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Other current
assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
35,880 |
37,080 |
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Long-term
investments |
0 |
0 |
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Fixed assets net
value |
1,800 |
2,910 |
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Projects under
construction |
0 |
0 |
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Long-term
deferred expenses |
0 |
580 |
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Intangible
assets |
0 |
0 |
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Other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
37,680 |
40,570 |
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============= |
============= |
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Short loans |
3,840 |
3,990 |
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Notes payable |
5,920 |
9,990 |
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Accounts payable |
15,070 |
11,330 |
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Advances from
customers |
10 |
1,290 |
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Accrued payroll |
0 |
0 |
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Taxes payable |
180 |
110 |
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Other accounts
payable |
1,090 |
10 |
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Other current
liabilities |
0 |
0 |
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----------------- |
----------------- |
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Current
liabilities |
26,110 |
26,720 |
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Long term
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
26,110 |
26,720 |
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Shareholders
equities |
11,570 |
13,850 |
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------------------ |
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Total
liabilities & equities |
37,680 |
40,570 |
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============= |
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Income Statement
Unit: CNY’000
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as of Dec. 31, 2011 |
as of Dec. 31, 2012 |
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Turnover |
79,730 |
85,740 |
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Cost of goods
sold |
70,730 |
76,420 |
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Taxes and
additional of main operation |
140 |
210 |
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Sales expense |
0 |
0 |
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Management expense |
5,960 |
7,900 |
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Finance expense |
630 |
-570 |
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Subsidy income |
190 |
910 |
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Non-operating
income |
0 |
90 |
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Non-operating expense |
0 |
60 |
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Profit before
tax |
2,460 |
2,720 |
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Less: profit tax |
370 |
410 |
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Net profit |
2,090 |
2,310 |
Important
Ratios
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As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
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*Current ratio |
1.37 |
1.39 |
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*Quick ratio |
1.25 |
1.19 |
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*Liabilities
to assets |
0.69 |
0.66 |
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*Net profit
margin (%) |
2.62 |
2.69 |
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*Return on
total assets (%) |
5.55 |
5.69 |
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*Inventory
/Turnover ×365 |
15 days |
22 days |
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*Accounts
receivable/Turnover ×365 |
67 days |
47 days |
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*Turnover/Total
assets |
2.12 |
2.11 |
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* Cost of
goods sold/Turnover |
0.89 |
0.89 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in its line in
both years, and it increased in 2012.
l
SC’s net profit margin is average in both years.
l
SC’s return on total assets is fairly good in both
years.
l
SC’s cost of goods sold is average, comparing with
its turnover in both years.
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 is maintained in an average
level in both years.
l
The accounts receivable of SC appears average in
both years.
l
SC’s short-term loan appears average in both years.
l
SC’s turnover is in an average level, comparing
with the size of its total assets in both years.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average in both years.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Stable.
SC is considered medium-sized in its line with stable 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 |
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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.