MIRA
INFORM REPORT
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Report Date : |
08.02.2013 |
IDENTIFICATION DETAILS
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Name : |
Shenzhen Great Technology Co., Ltd. |
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Registered Office : |
Unit 09-11, 20/F, Changhong
Technology Building, Keji South 12th Road, South Zone, Hi-Tech
Park, Nanshan District, Shenzhen, Guangdong
Province, 518057 |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
24.04.2006 |
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Com. Reg. No.: |
440306103293203 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Manufacturing
and selling of electronic products. |
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No. of Employees : |
310 |
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 : |
Unknown |
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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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
|
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 2010 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 near 9% for 2011. An economic slowdown in Europe is
expected to further drag Chinese growth in 2012. 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
Shenzhen Great Technology Co., Ltd.
Unit 09-11, 20/F,
Changhong Technology Building, Keji South 12TH Road,
South Zone, Hi-Tech
Park, NanshaN District, Shenzhen, Guangdong PROVINCE, 518057 PR CHINA
TEL: 86 (0)
755-82943320/33823012 FAX: 86 (0)
755-82943862/33823072
EXECUTIVE SUMMARY
INCORPORATION DATE : APR. 24, 2006
REGISTRATION NO. : 440306103293203
REGISTERED LEGAL FORM : Limited liabilities company
CHIEF EXECUTIVE : MR. YANG CHUBIN (CHAIRMAN)
STAFF STRENGTH : 310
REGISTERED CAPITAL : CNY 30,000,000
BUSINESS LINE : manufacturing
TURNOVER : CNY 29,780,000 (UNAUDITED, AS OF DEC. 31, 2010)
EQUITIES : CNY 22,110,000 (UNAUDITED, AS OF DEC. 31, 2010)
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.22 = 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: the given name Great Group (HK) Technology Co., Ltd. is a Hong Kong registered company and SC also uses it as its trade name. The said company is managed by the same management team as SC working from the heading premise. The was the former address of SC.
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 Apr. 24, 2006.
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 electronic products, communications equipment,
communications equipment and related products, computer software and hardware,
clothing apparel, cosmetics sales; communications equipment repair; electronic
products, mobile phone technology development, design, production; importing
and exporting various kinds of commodities and technology.
SC is mainly
engaged in manufacturing and selling electronic products.
Mr. Yang Chubin
has been chairman of SC since 2007.
SC is known to
have approx. 310 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in the high-tech park of Shenzhen. Our checks reveal that SC
rents the total premise about 300 square meters.
SC’s factory is known in 3/F Block 1, Saitu Digital Technology Park, Bulan Road, Buji Street, Longgang District, Shenzhen.
http://www.szgreatmobile.com
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
Changes of its registered information are as follows:
|
Date |
Item |
Before the
change |
After the change |
|
2007-5 |
Legal rep. |
Chen Yibin |
Present one |
|
Registered
capital |
CNY 1,000,000 |
CNY 2,000,000 |
|
|
Shareholders |
Yang Zhenhui40% Chen Yibin60% |
Yang Zhenhui20% Yang Chubin80% |
|
|
2008-4 |
Registered
capital |
CNY 2,000,000 |
CNY 5,000,000 |
|
Shareholdings |
Yang Zhenhui20% Yang Chubin80% |
Yang Zhenhui8% Yang Chubin92% |
|
|
Registered
number |
4403011223080 |
440306103293203 |
|
|
2008-7 |
Registered
capital |
CNY 5,000,000 |
Present amount |
|
Shareholdings |
Yang Zhenhui8% Yang Chubin92% |
Present ones |
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Yang Zhenhui 2
Yang Chubin
98
l
Chairman and General Manager:
Mr. Yang Chubin, in his 30’s, with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 2007 to present Working in SC as chairman and general manager.
l
Supervisor:
Yang Zhenhui
SC is mainly
engaged in manufacturing and selling electronic products.
SC’s products
mainly include:
QWERTY keypad
Long standby mobile
Dual sim dual standby
TV phone
CDMA
Slider phone
Bar phone
Folder phone
SC sources its materials 90% from domestic
market and 10% from the overseas market, mainly Europe. SC sells 100% of its
products in domestic market.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include T/T and Credit of 30-60 days.
Note: SC’s management declined to release its main clients and
suppliers.
Great
Group (HK) Technology Co., Ltd.
==========================
Registered
number: 1269757
Incorporated
date: Sep. 2, 2008
Legal form: Private
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
AC#：44201532700052514537
Relationship:
Normal.
Balance Sheet
|
Unit: CNY’000 |
as
of Dec. 31, 2009 |
as
of Dec. 31, 2010 |
|
Cash & bank |
100 |
3,710 |
|
Inventory |
1,550 |
10,560 |
|
Accounts
receivable |
2,590 |
12,380 |
|
Other Accounts
receivable |
14,670 |
28,690 |
|
Advances to
suppliers |
0 |
10,910 |
|
Other current
assets |
0 |
110 |
|
|
------------------ |
------------------ |
|
Current assets |
18,910 |
66,360 |
|
Fixed assets net
value |
3,900 |
2,160 |
|
Projects under
construction |
0 |
0 |
|
Long term
investment |
0 |
0 |
|
Other assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
22,810 |
68,520 |
|
|
============= |
============= |
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Short loans |
0 |
30,000 |
|
Accounts payable |
1,230 |
5,250 |
|
Other Accounts
payable |
40 |
2,740 |
|
Advances from
clients |
0 |
8,840 |
|
Tax payable |
-70 |
-750 |
|
Other current
liabilities |
50 |
330 |
|
|
------------------ |
------------------ |
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Current
liabilities |
1,250 |
46,410 |
|
Long term
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
1,250 |
46,410 |
|
Equities |
21,560 |
22,110 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
22,810 |
68,520 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
as of Dec. 31,
2010 |
|
Turnover |
29,780 |
|
Cost of goods
sold |
25,600 |
|
Sales expense |
560 |
|
Management expense |
2,530 |
|
Finance expense |
510 |
|
Profit before
tax |
550 |
|
Less: profit tax |
0 |
|
Profits |
550 |
Note: SC’s management declined to release the latest financial
information.
Important
Ratios
=============
|
|
2009 |
2010 |
|
*Current ratio |
15.13 |
1.43 |
|
*Quick ratio |
13.89 |
1.20 |
|
*Liabilities
to assets |
0.05 |
0.68 |
|
*Net profit margin
(%) |
/ |
1.85 |
|
*Return on
total assets (%) |
/ |
0.80 |
|
*Inventory
/Turnover ×365 |
/ |
129 days |
|
*Accounts
receivable/Turnover ×365 |
/ |
152 days |
|
*Turnover/Total
assets |
/ |
0.43 |
|
* Cost of
goods sold/Turnover |
/ |
0.86 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in 2010.
l
SC’s net profit margin is average in 2010.
l
SC’s return on total assets is average in 2010.
l
SC’s cost of goods sold is average in 2010, comparing
with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC is fairly large in 2010.
l
The accounts receivable of SC is fairly large in
2010.
l
The short-term loan of SC appears large in 2010.
l
SC’s turnover is in a fair level in 2010, comparing
with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average in 2010.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
SC is considered medium-sized in its line with fairly stable financial
conditions. The large amount of short loans could be a threat to SC’s financial
condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.14 |
|
|
1 |
Rs.83.27 |
|
Euro |
1 |
Rs.71.94 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIT |
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.