MIRA
INFORM REPORT
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Report Date : |
24.08.2013 |
IDENTIFICATION DETAILS
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Name : |
APC (XIAMEN) POWER INFRASTRUCTURE CO. LIMITED |
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Registered Office : |
No. 1678 Jixian Road, Tong’an District, Xiamen Fujian Province 361100 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
12.01.2005 |
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Com. Reg. No.: |
350298400003528 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Manufacturing and Selling UPS systems. |
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No. of Employees : |
600 |
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 : |
Good |
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Payment Behaviour : |
Regular |
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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 ANDDRESS
APC (Xiamen) Power
Infrastructure Co., Ltd.
no. 1678 jixian road,
tong’an district, xiamen
fujian PROVINCE
361100 PR CHINA
TEL: 86 (0)
592-7572714
FAX: 86 (0) 592-7896930
EXECUTIVE SUMMARY
Date
of Registration :
january 12, 2005
REGISTRATION
NO. : 350298400003528
LEGAL
FORM : Wholly foreign-owned enterprise
REGISTERED CAPITAL : usd 10,000,000
staff :
600
BUSINESS CATEGORY : MANUFACTURING
Revenue : CNY 775,149,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 316,382,000 (AS OF DEC. 31, 2012)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
fairly stable
OPERATIONAL TREND : fairly STEADY
GENERAL
REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.13 = 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
Not yet
be determined
LEGAL STATUS & HISTORY
SC was established as a wholly
foreign-owned enterprise of PRC with State Administration of Industry & Commerce
(SAIC) under registration No.: 350298400003528 on January 12, 2005.
SC’s Organization Code Certificate No.: 76925633-9
%20POWER%20INFRASTRUCTURE%20CO%20%20LIMITED%20-%20233059%2024-Aug-2013_files/image002.jpg)
SC’s Tax No.: 350206769256339
SC’s registered capital: usd 10,000,000
SC’s paid-in capital: usd 10,000,000
Registration
Change Record:-
|
Date |
Change
of Contents |
Before
the change |
After
the change |
|
|
Legal Representative |
Donald
Michael Muir |
Michael
Ricci |
Current
Co search indicates SC’s shareholders & chief executives are as follows:-
|
Name
of Shareholder (s) |
% of
Shareholding |
|
American
Power Conversion B.V. |
100 |
SC’s
Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Michael Ricci |
RECENT DEVELOPMENT
No recent
development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
American Power Conversion B.V. 100
MANAGEMENT
Michael Ricci, Legal
Representative and Chairman
------------------------------------------------------------------
Ø
Gender:
M
Ø
Nationality:
USA
Ø
Passport
No.: 208865326
Ø
Qualification:
University
Ø
Working
experience (s):
From
2006 present, working in SC as legal representative and chairman
BUSINESS OPERATION
SC’s registered business scope includes designing and manufacturing UPS systems, power management products,
and other electronic equipment, special air-conditioning and related products
and parts, providing related installation services, after-sales service and
technical consulting services; wholesale, import and export, commission agent
of above products and parts, providing other related ancillary business.
SC is mainly engaged in
manufacturing and selling UPS.
SC’s products mainly include: UPS
SC sources its materials 100% from domestic market. SC sells 60% of its
products in domestic market, and 40% 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:
American Power Conversion
Schneider Electric It Corp.
Staff & Office:
--------------------------
SC is known to
have approx. 600 staff at
present.
SC owns an area as its operating office and
factory, but the detailed information is unknown.
RELATED COMPANY
SC is known to have a branch at present,
Apc (Xiamen) Power
Infrastructure Co., Ltd. Shanghai Branch
------------------------------------------------------------
Date of
Registration: July 1, 2008
Registration No.:
310000500216858
Legal Form: Branch
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.
***Note: SC’s management declined to release
whether it has account in Industrial
& Commercial Bank of China.
FINANCIALS
Balance
Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
|
22,857 |
46,253 |
|
|
Notes
receivable |
0 |
0 |
|
Accounts receivable |
201,899 |
270,917 |
|
Advances to suppliers |
3,053 |
1,856 |
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Other receivable |
28,563 |
47,469 |
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Inventory |
110,755 |
86,583 |
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Non-current assets within one
year |
0 |
0 |
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Other current assets |
0 |
0 |
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|
------------------ |
------------------ |
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Current assets |
367,127 |
453,078 |
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Fixed assets |
88,232 |
84,350 |
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Construction in progress |
6,148 |
1,270 |
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Intangible assets |
231 |
1,431 |
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Long-term prepaid expenses |
0 |
0 |
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Deferred income tax assets |
2,966 |
7,209 |
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Other non-current assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
464,704 |
547,338 |
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============= |
============= |
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Short-term loans |
90,453 |
62,734 |
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Notes payable |
0 |
0 |
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Accounts payable |
91,573 |
144,123 |
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Wages payable |
5,447 |
6,769 |
|
Taxes payable |
-6,481 |
-541 |
|
Advances from clients |
181 |
0 |
|
Other payable |
18,224 |
17,871 |
|
Other current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Current liabilities |
199,397 |
230,956 |
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Non-current liabilities |
0 |
0 |
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|
------------------ |
------------------ |
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Total liabilities |
199,397 |
230,956 |
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Equities |
265,307 |
316,382 |
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|
------------------ |
------------------ |
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Total liabilities & equities |
464,704 |
547,338 |
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|
============= |
============= |
Income
Statement
|
Unit: CNY’000 |
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
|
Revenue |
770,442 |
775,149 |
|
Cost of sales |
660,205 |
700,781 |
|
Taxes and surcharges |
3,000 |
1,547 |
|
Sales expense |
2,944 |
-60 |
|
Management expense |
12,557 |
14,091 |
|
Finance
expense |
3,924 |
3,825 |
|
Non-business income |
814 |
1,139 |
|
Non-business expenditure |
509 |
537 |
|
Profit before tax |
88,117 |
55,566 |
|
Less: profit tax |
10,414 |
4,491 |
|
77,703 |
51,075 |
Important Ratios
=============
|
|
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
|
*Current ratio |
1.84 |
1.96 |
|
*Quick ratio |
1.29 |
1.59 |
|
*Liabilities to assets |
0.43 |
0.42 |
|
*Net profit margin (%) |
10.09 |
6.59 |
|
*Return on total assets (%) |
16.72 |
9.33 |
|
*Inventory / Revenue ×365 |
53 days |
41 days |
|
*Accounts receivable/ Revenue ×365 |
96 days |
128 days |
|
* Revenue/Total assets |
1.66 |
1.42 |
|
* Cost of sales / Revenue |
0.86 |
0.90 |
FINANCIAL COMMENTS
PROFITABILITY: FAIRLY GOOD
l
The revenue of SC appears fairly good in its line.
l
SC’s net
profit margin is fairly good in both years.
l
SC’s
return on total assets is fairly good in both years.
l
SC’s
cost of sales is average, comparing with its revenue.
LIQUIDITY: AVERAGE
l
The
current ratio of SC is maintained in a normal level.
l
SC’s
quick ratio is maintained in a fairly good level.
l
The
inventory of SC is maintained in an average level.
l
The
accounts receivable of SC appears large.
l
SC’s
short-term loans are in an average level.
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
Stable.
CONCLUSIONS
SC is considered
medium-sized in its line with fairly stable
financial conditions. The large amount of accounts receivable may be a threat
to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 64.69 |
|
|
1 |
Rs. 100.80 |
|
Euro |
1 |
Rs. 86.30 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
RATING EXPLANATIONS
|
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 |
|
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.