MIRA INFORM REPORT
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Report Date : |
27.08.2013 |
IDENTIFICATION DETAILS
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Name : |
LONGCHEER ELECTRONICS (HUIZHOU) CO., LTD. |
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Registered Office : |
Building 1, No. 28 (West) Hechang Six Road, Zhongkai Hi-Tech Zone Huizhou, Guangdong Province 516006 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
26.11.2009 |
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Com. Reg. No.: |
441300400031791 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Manufacturing, and selling communications products, computer,
multimedia electronic technology & related software & hardware & spare
parts, and finished products, after services, technology consulting service,
and international trade. |
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No. of Employees : |
856 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
China |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
|
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
LONGCHEER ELECTRONICS
(HUIZHOU) CO., LTD.
building 1, no. 28
(west) hechang six road, zhongkai hi-tech zone
huizhou, guangdong
province 516006 PR CHINA
TEL: 86 (0)
752-5855888/5855866
FAX: 86 (0)
752-5855888
EXECUTIVE SUMMARY
Date of Registration : NOVEMBER 26,
2009
REGISTRATION NO. : 441300400031791
LEGAL FORM : Wholly foreign-owned enterprise
REGISTERED CAPITAL :
usd 4,000,000
staff : 856
BUSINESS CATEGORY : manufacturing & TRADING
Revenue :
cny 2,011,607,000 (AS OF DEC. 31, 2012)
EQUITIES :
cny 21,437,000 (AS OF DEC. 31, 2012)
WEBSITE : www.longcheertel.com
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.: 441300400031791 on November 26,
2009.
SC’s Organization Code Certificate
No.: 69648623-9
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SC’s Tax No.: 441300696486239
SC's Customs Registration No.:
4413942735
SC’s registered capital: usd 4,000,000
SC’s paid-in capital: usd 4,000,000
Registration Change Record:-
No significant changes of SC have been
noted in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Mobell Technology Pte. Ltd.
(Singapore) |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Ge Zhengang |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Mobell Technology Pte. Ltd.
(Singapore) 100
MANAGEMENT
Ge Zhengang, Legal Representative, Chairman, and General Manager
-----------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 35
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal
representative, chairman, and general manager
BUSINESS OPERATION
SC’s registered business scope includes researching,
developing, manufacturing, and selling communications products, computer,
multimedia electronic technology & related software & hardware &
spare parts, and finished products, after services, technology consulting
service, and international trade.
SC is
mainly engaged in manufacturing and selling communications products.
SC’s
products mainly include: Mobile phone, etc.
SC sources its materials 100% from domestic
market. SC sells 92% of its products in domestic market, and 8% to overseas
market, mainly Hong Kong, Pakistan, and Vietnam.
The
import & export status of SC in 2012 is as follows,
|
Country |
Amount
of Exports (USD) |
Amount of Imports (USD) |
|
Hong Kong |
583,100 |
-- |
|
Pakistan |
951,200 |
-- |
|
Vietnam |
1,662,200 |
-- |
The buying
terms of SC include T/T and Credit of 30-60 days. The payment terms of SC
include T/T, L/C and Credit of 30-60 days.
Staff & Office:
--------------------------
SC is
known to have approx. 856 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,
l
Longcheer Electronics (Huizhou) Co., Ltd. Shenzhen Branch
Registration
No.: 440301506666714
Date
of Registration: May 19, 2010
Principal:
Ge Zhengang
Related Companies
l
Longcheer Holdings Ltd.
Add:
Building 1, No.401, Caobao Road, Shanghai, P.R. China
ZIP:
200233
Tel:
+86-21-64088898
Fax:
+86-21-54970876
Website:
www.longcheertel.com
l
Longcheer Technology (India) Pvt. Ltd.
Add:
C-37, Sector-58, Nodia 201 301, (UP) India
Tel:
+91-120-4383900
Fax:
+91-120-4383999
Etc.
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
Basic Bank:
China Merchants Bank Huizhou Branch
AC#:
755917770010209
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
|
15,820 |
|
|
Notes receivable |
60,460 |
|
Accounts
receivable |
175,050 |
|
Advances to
suppliers |
210 |
|
Other receivable |
20,150 |
|
Inventory |
82,580 |
|
Prepaid expenses |
410 |
|
Non-current
assets within one year |
0 |
|
Other current
assets |
0 |
|
|
------------------ |
|
Current assets |
354,680 |
|
Fixed assets |
8,350 |
|
Construction in
progress |
0 |
|
Intangible
assets |
0 |
|
Long-term
prepaid expenses |
0 |
|
Deferred income
tax assets |
0 |
|
Other
non-current assets |
0 |
|
|
------------------ |
|
Total assets |
363,030 |
|
|
============= |
|
Short-term loans |
0 |
|
Notes payable |
12,450 |
|
Accounts payable |
239,840 |
|
Wages payable |
2,810 |
|
Taxes payable |
-3,160 |
|
Advances from
clients |
2,200 |
|
Other payable |
99,760 |
|
Other current liabilities |
0 |
|
|
------------------ |
|
Current
liabilities |
353,900 |
|
Non-current
liabilities |
0 |
|
|
------------------ |
|
Total
liabilities |
353,900 |
|
Equities |
9,130 |
|
|
------------------ |
|
Total
liabilities & equities |
363,030 |
|
|
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
|
Revenue |
959,192 |
|
Profit before
tax |
2,984 |
|
Less: profit tax |
0 |
|
2,984 |
Financial Summary
|
Unit: CNY’000 |
As
of Dec. 31, 2012 |
|
Long term investment |
0 |
|
Total assets |
1,172,315 |
|
|
------------- |
|
Long term liabilities |
0 |
|
Total
liabilities |
1,150,878 |
|
Equities |
21,437 |
|
|
------------- |
|
Revenue |
2,011,607 |
|
Profit before
tax |
12,312 |
|
Less: profit tax |
0 |
|
Profits |
12,312 |
Note: The detailed financials for Y2012 are not available in SAIC.
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
1.00 |
-- |
|
*Quick ratio |
0.77 |
-- |
|
*Liabilities
to assets |
0.97 |
0.98 |
|
*Net profit
margin (%) |
0.31 |
0.61 |
|
*Return on
total assets (%) |
0.82 |
1.05 |
|
*Inventory /
Revenue ×365 |
32 days |
-- |
|
*Accounts
receivable/ Revenue ×365 |
67 days |
-- |
|
*
Revenue/Total assets |
2.64 |
1.72 |
|
* Cost of
sales / Revenue |
-- |
-- |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l The revenue of SC appears good in its line, and it increased in
2012.
l SC’s net profit
margin is average in both years.
l SC’s return on
total assets is average in both years.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in a normal
level in 2011.
l
SC’s quick ratio is maintained in a normal level in
2011.
l
The inventory of SC is maintained in an average
level in 2011.
l
The accounts receivable of SC is maintained in an
average level in 2011.
l
SC has no short-term loans in 2011.
l
SC’s revenue is in an
average level, comparing with the size of its total assets.
LEVERAGE:
FAIR
l
The debt ratio of SC is fairly high in both years.
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.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 64.23 |
|
|
1 |
Rs. 100.01 |
|
Euro |
1 |
Rs. 85.93 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
RATING EXPLANATIONS
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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.