MIRA
INFORM REPORT
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Report Date : |
05.12.2013 |
IDENTIFICATION DETAILS
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Name : |
GUANGDONG MEIZHI COMPRESSOR LIMITED |
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Formerly Known As : |
Guangdong Toshiba Macro Compressor Limited |
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Registered Office : |
Shunfengshan Industrial Development Zone, Shunde District, Foshan, Guangdong Province, 528333
Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
26.09.1995 |
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Com. Reg. No.: |
440681400009926 |
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Legal Form : |
Chinese-Foreign Equity Joint
Venture Enterprise |
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Line of Business : |
researching, developing, manufacturing and selling of room-used rotary
air-conditioner compressors. |
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No. of Employees : |
3,000 |
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 – September 30th, 2013
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Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
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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.
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Source : CIA |
Company name & address
Guangdong Meizhi Compressor Limited
Shunfengshan IndustrIAL
Development Zone, Shunde DISTRICT,
FOSHAN, GUANGDONG
PROVINCE, 528333 PR CHINA
TEL: 86 (0)
757-22329000 / 22329615 FAX: 86 (0)
757-22297514
EXECUTIVE SUMMARY
INCORPORATION DATE : SEPTEMBER 26, 1995
REGISTRATION NO. : 440681400009926
REGISTERED LEGAL FORM :
CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE
CHIEF EXECUTIVE : MR. fang hongbo (CHAIRMAN)
STAFF STRENGTH : 3,000
REGISTERED CAPITAL :
USD 55,270,000
BUSINESS LINE : researching,
developing, MANUFACTURING & trading
TURNOVER : CNY 4,325,220,000 (AS OF DEC. 31, 2012)
EQUITIES : CNY 1,473,150,000 (AS OF DEC. 31, 2012)
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY stable
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : WELL-KNOWN
EXCHANGE RATE : CNY 6.0926 = 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
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 September 26, 1995.
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 developing, designing and manufacturing household air condition
rotary type compressor, electrical motor, parts; selling self-made products and
supplying installing and maintain services.
SC is mainly
engaged in researching, developing, manufacturing and selling room-used rotary
air-conditioner compressors.
Mr. Fang Hongbo is legal representative and chairman of SC at
present.
SC is known to have approx. 3,000 employees at
present.
SC is currently operating at the above stated address, and this
address houses its operating office and factory in the industrial development
zone of Foshan. SC’s accountant refused to release the detailed information of
the total premise.
http://www.chinagmcc.com/ It is
the website of GMCC, and also includes the information
on SC and its related companies. The design is professional and the
content is well organized. At present it is in Chinese version.
E-mail: chenlj@chinagmcc.com
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the
change |
After the change |
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1999-09 |
Company Name |
Guangdong Toshiba Macro Compressor Limited
|
Guangdong
Meizhi Compressor Limited |
|
2003-06 |
Main Shareholders |
Guangdong Midea Group Holding Co. Ltd. Japan Toshiba Corporation |
Guangdong Midea Group Holding Co. Ltd. Japan Toshiba Carrier Corporation |
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2007-03 |
Registered capital |
USD 32,600,000 |
USD 55,270,000 |
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2007-04 |
Legal representative |
He Xiangjian |
Cai Qiwu |
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2008-09 |
Registration No. |
002682 |
440681400009926 |
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Unknown |
Main Shareholders |
Guangdong Midea Group Holding Co. Ltd. Japan Toshiba Carrier Corporation |
Present ones |
|
Legal representative |
Cai Qiwu |
Present one |
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name
% of Shareholding
GD Midea Holding Co., Ltd. 60
Japan Toshiba Carrier Corporation 40
GD Midea Holding Co., Ltd.
======================
Its former English name was “Guangdong Midea
Electric Appliances Co., Ltd.”.
It is a listed company in Shenzhen Stock
Exchange Market with the code of 000527.
GD Midea Holding Co., Ltd. is principally
engaged in the manufacture and sale of household electronics, commercial
equipment and compressors. The Company’s main products include household air
conditioners, commercial air conditioners, compressors, refrigerators and
washing machines. Midea has grown from what was once a local workshop into a
leading consumer appliances and air conditioning systems manufacturer, with
operations around the world. Its many years of persistent growth has brought
its global turnover to $22 billion USD in 2011. Consequently, Midea has created
over 150,000 jobs both in China, and throughout the world.
Registration No.: 440000000020099
Legal representative: Fang Hongbo
Registered Capital: CNY 3,384,350,000
Tel: +86-757-26338779
Fax: +86-757-26651991
Web: http://www.midea.com
E-mail: IR@midea.com
Japan Toshiba Carrier Corporation
=========================
Representative (President): Akira Inoue
Capital: 11,510,000,000 Yen
Number of Employees: About 3,200 (as of
March 2010/Toshiba Carrier Group)
Add.: Shinagawa Center Building, 23-17,
Takanawa 3-chome, Minato-ku, Tokyo, 108-8580, Japan
Tel: +81-3-6409-4155
Fax: +81-3-5447-8395
Web: http://www.toshiba-aircon.jp/
Legal
Representative and Chairman:
Mr. Fang Hongbo, born in 1967, with Master’s
degree, Economist, He is currently responsible for the overall management of
SC.
Working Experience(s):
At present Working
in SC as legal representative and chairman.
Also working in GD Midea Holding Co., Ltd.,
Guangdong Meizhi Precision Manufacturing Co., Ltd., Wuxi Little Swan Company
Limited, Anhui Meizhi Compressor Co., Ltd. as legal representative, etc.
SC is mainly
engaged in researching, developing, manufacturing and selling room-used rotary
air-conditioner compressors.
SC’s products mainly include: room-used
rotary air-conditioner compressor.
SC sources its materials 70%
from domestic market, and 30% from overseas market. SC sells 80% of its
products in domestic market, and 20% 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.
Guangdong Meizhi Precision
Manufacturing Co., Ltd.
=======================================
Registration No.: 440681400010295
Incorporation Date: 2004-05-10
Legal Rep.: Fang Hongbo
Registered Capital: USD 7,740,097
Tel.: 0757-22329000
Fax: 0757-22297514
Wuxi
Little Swan Company Limited
==========================
It is a listed company in Shenzhen Stock
Exchange Market with the code of 000418.
Registration No.: 320200000014723
Legal Rep.: Fang Hongbo
Registered Capital: CNY 632,488,000
Tel.: 0510-81082320
Fax: 0510-83720879
Web: http://www.littleswan.com
E-mail: IR_littleswan@littleswan.com.cn
Anhui
Meizhi Compressor Co., Ltd.
==========================
Incorporation Date: Feb. 28, 2008
Registration No.: 340000400000890
Registered Capital: CNY 325,000,000
Legal Rep.: Fang Hongbo
Address: No. 418 Rainbow Road, Science City, High-Tech Industrial Development
Zone, Hefei, Anhui Province, 230031 PR China
Tel:
86 (0) 551-65298888
Fax:
86 (0) 551-65298889
Anhui
Meizhi Precision Manufacturing Co., Ltd.
===================================
Address: No. 3, Taishan Road, Wuhu Economic & Technological
Development Area, Anhui
Tel.: +86-553-5621000
Fax: +86-553-5621000
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.
SC’s management
declined to release its bank details.
Financial
Information
Unit: CNY’000
Note:
SC’s accountant refused to release the detailed financial reports for Yr2011
and Yr2012.
Important Ratios
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as
of Dec. 31, 2011 |
as
of Dec. 31, 2012 |
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*Liabilities
to assets |
0.65 |
0.52 |
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*Net profit
margin (%) |
2.04 |
1.84 |
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*Return on
total assets (%) |
4.62 |
2.58 |
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*Turnover/Total
assets |
2.27 |
1.40 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears good in its
line in both years, but it declined 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.
l
SC’s turnover is in an average level in
both years, 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.
SC is considered large-sized in its line with fairly stable
financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.33 |
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UK Pound |
1 |
Rs.102.18 |
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Euro |
1 |
Rs.84.68 |
INFORMATION DETAILS
|
Report
Prepared by : |
MNL |
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 |
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41-55 |
Ba |
Overall
operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
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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 |
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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.