MIRA
INFORM REPORT
|
Report Date : |
18.02.2013 |
IDENTIFICATION DETAILS
|
Name : |
Hangzhou
Dahe Thermo-Magnetics Co., Ltd. |
|
|
|
|
Registered Office : |
No. 668/777 Binkang Road,
Binjiang District, Hangzhou,
Zhejiang Province 310053 PR |
|
|
|
|
Country : |
China |
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|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
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Date of Incorporation : |
31.01.1992 |
|
|
|
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Com. Reg. No.: |
330100400010499 |
|
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Legal Form : |
Wholly Foreign-Owned Enterprise |
|
|
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LINE OF BUSINESS : |
SUBJECT
INCLUDES RESEARCHING, DEVELOPING, AND
MANUFACTURING MAGNETIC FLUID & ITS APPLICATION PRODUCTS, MECHANICAL &
ELECTRICAL INTEGRATION PRODUCTS ETC. |
|
|
|
|
No. of Employees : |
2,110 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Good |
|
Payment Behaviour : |
Regular |
|
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 (31.03.2012) |
Current Rating (30.06.2012) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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
Hangzhou Dahe Thermo-Magnetics Co.,
Ltd.
no.
668/777 binkang road, binjiang district
hangzhou,
zhejiang province 310053 PR CHINA
TEL: 86
(0) 571-86699985/86695128
FAX: 86
(0) 571-86697695
EXECUTIVE SUMMARY
Date of Registration : JANUARY 31, 1992
REGISTRATION NO. : 330100400010499
LEGAL FORM :
Wholly foreign-owned enterprise
REGISTERED CAPITAL :
JPY 6,910,384,476
staff : 2,110
BUSINESS CATEGORY :
manufacturing
Revenue : CNY 1,378,914,000 (AS OF DEC. 31, 2011)
EQUITIES : CNY 791,054,000 (AS OF DEC. 31, 2011)
WEBSITE : www.ferrotec.com.cn
E-MAIL : tesales@ferrotec.com.cn
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly GOOD
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION : FAIRLY GOOD
EXCHANGE RATE : CNY 6.25 = USD
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.:
330100400010499 on January 31, 1992.
SC’s Organization Code Certificate
No.: 60916502-4
SC’s Tax No.: 330195609165024
SC’s registered capital: JPY 6,910,384,476
SC’s paid-in capital: JPY 6,910,384,476
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 |
|
Ferrotec Corporation (Japan) |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal
Representative and Chairman |
Akira
Yamamura |
|
Vice Chairman and General
Manager |
He
Xianhan |
|
Director |
Masaru
Yoshida |
RECENT DEVELOPMENT
No recent development was found during our checks at
present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Ferrotec Corporation (Japan)
100
----------------------------------
Ferrotec Corporation is a
Japan-based manufacturer of semiconductor equipment-related products. The
Company operates in four business segments. The Equipment-related segment is
involved in the development, manufacture and sale of vacuum seals and ceramic
products, as well as the manufacture and sale of quartz products and silicon
wafers.
Chuo-ku Tokyo 103-0027 Japan
Tel: +81-3-3281-8808
Fax: +81-3-3281-8848
Web: www.ferrotec.co.jp
MANAGEMENT
Akira
Yamamura, Legal Representative and Chairman
-----------------------------------------------------------------------------------
Ø
Gender: M
Ø
Passport No.: 1344004
Ø
Nationality: Japan
Ø
Working experience (s):
At present, working in SC as legal
representative and chairman
Also working in Hangzhou Wagen Precision Tooling
Co., Ltd. as legal representative
He
Xianhan, Vice Chairman and General Manager
-----------------------------------------------------------------------------
Ø
Gender: M
Ø
Passport No.: 891248
Ø
Working experience (s):
At present, working in SC as vice chairman and
general manager
Also working in Advanced Quartz Material (HangZhou
) Co., Ltd. as legal representative
Masaru
Yoshida, Supervisor
-------------------------------------
Ø
Gender: M
Ø
Passport No.: MS2177700
Ø
Nationality: Japan
BUSINESS OPERATION
SC’s registered business scope
includes researching, developing, and manufacturing magnetic fluid
& its application products, mechanical & electrical integration
products, semiconductor refrigeration element & its application products,
precision machinery parts, semiconductor quartz products, electric blanket, heating
flooring products, precision instrumentation products, high purity product for
precision ceramic industry, crystal silicon solar cells, and crystalline
silicon solar modules; selling its products; providing related technology
consulting services.
SC is
mainly engaged in manufacturing and selling magnetic fluid & its
application products, etc.
SC’s products mainly include:
Magnetic fluid sealing ring
Semiconductor refrigerator
Precision vacuum components
Semiconductor quartz products
Etc.
SC sources its materials 75%
from domestic market, and 25% from overseas market, mainly Japan, France,
U.S.A., Germany, and Italy. SC sells 42% of its products in domestic market,
and 58% to overseas market, mainly Japan, France, U.S.A., Germany, Taiwan,
Korea, and UK.
The import & export status of SC in 2011 is as follows,
|
Country |
Amount
of Exports (USD) |
Amount of Imports (USD) |
|
Japan |
70,596,732.95 |
18,846,553.86 |
|
France |
11,841,574.64 |
2,405,108.76 |
|
U.S.A. |
11,163,261.88 |
21,524,870.50 |
|
Germany |
32,718,909.25 |
30,749.55 |
|
Taiwan |
86,795.29 |
0 |
|
Korea |
2,074.00 |
0 |
|
UK |
13,554.38 |
0 |
|
Italy |
0 |
642,135.90 |
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.
Staff & Office:
--------------------------
SC is
known to have approx. 2,110 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 the following subsidiaries at present,
n
Advanced Quartz Material (HangZhou ) Co., Ltd.
Registration No.: 330100400024443
Date of Registration: September 19, 2006
Legal Form: Chinese-foreign equity joint venture enterprise
Registered Capital: JPY 1,260,000,000
Legal Representative: He Xianhan
Web: www.aqmhz.com
n
Hangzhou Wagen Precision Tooling Co., Ltd.
Registration No.: 330100400010353
Date of Registration: April 12, 2005
Legal Form: Chinese-foreign equity joint venture enterprise
Registered Capital: JPY 542,000,000
Legal Representative: Akira Yamamura
Web: www.wagen.cc
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 local SAIC.
FINANCIALS
Balance Sheet
|
Unit:
CNY’000 |
As of Dec. 31, 2010 |
As of Dec. 31, 2011 |
|
62,036 |
256,092 |
|
|
Notes receivable |
15,000 |
1,468 |
|
Accounts
receivable |
296,672 |
271,913 |
|
Advances
to suppliers |
25,200 |
12,910 |
|
Other
receivable |
12,129 |
10,095 |
|
Inventory |
107,721 |
108,777 |
|
Deferred
expense |
2,632 |
2,705 |
|
Non-current
assets within one year |
0 |
0 |
|
Other
current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
assets |
521,390 |
663,960 |
|
Long-term
investment |
64,486 |
102,874 |
|
Fixed
assets |
368,261 |
493,992 |
|
Construction
in progress |
31,219 |
114,452 |
|
Intangible
assets |
6,702 |
6,838 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred
income tax assets |
0 |
0 |
|
Other
non-current assets |
11,911 |
4,177 |
|
|
------------------ |
------------------ |
|
Total
assets |
1,003,969 |
1,386,293 |
|
|
============= |
============= |
|
Short-term
loans |
136,354 |
204,887 |
|
Notes
payable |
0 |
45,240 |
|
Accounts
payable |
243,099 |
148,055 |
|
Wages
payable |
15,048 |
21,734 |
|
Welfares
payable |
14,726 |
20,330 |
|
Taxes
payable |
10,418 |
-2,047 |
|
Advances
from clients |
2,885 |
6,179 |
|
Other
payable |
17,480 |
13,438 |
|
Other
unpaid expenses |
337 |
322 |
|
Accrued
expense |
24,242 |
10,958 |
|
Other
current liabilities |
20,365 |
9,869 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
484,954 |
478,965 |
|
Non-current
liabilities |
30,861 |
116,274 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
515,815 |
595,239 |
|
Equities |
488,154 |
791,054 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
1,003,969 |
1,386,293 |
|
|
============= |
============= |
Income Statement
|
Unit:
CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
Revenue |
1,267,726 |
1,378,914 |
|
Cost of sales |
972,583 |
1,131,286 |
|
Taxes and surcharges |
214 |
6,647 |
|
Sales expense |
34,924 |
28,033 |
|
Management expense |
89,319 |
116,536 |
|
Finance expense |
18,128 |
18,685 |
|
Investment
income |
20,769 |
21,379 |
|
Subsidy
income |
1,309 |
4,924 |
|
Non-business
income |
1,291 |
201 |
|
Non-business expenditure |
3,705 |
3,385 |
|
Profit
before tax |
182,401 |
127,561 |
|
Less:
profit tax |
23,293 |
15,478 |
|
159,108 |
112,083 |
Important
Ratios
=============
|
|
As of Dec. 31, 2010 |
As of Dec. 31, 2011 |
|
*Current
ratio |
1.08 |
1.39 |
|
*Quick
ratio |
0.85 |
1.16 |
|
*Liabilities
to assets |
0.51 |
0.43 |
|
*Net
profit margin (%) |
12.55 |
8.13 |
|
*Return
on total assets (%) |
15.85 |
8.09 |
|
*Inventory
/ Revenue ×365 |
32
days |
29
days |
|
*Accounts
receivable/ Revenue ×365 |
86
days |
72
days |
|
*
Revenue/Total assets |
1.26 |
0.99 |
|
*
Cost of sales / Revenue |
0.77 |
0.82 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l
The revenue of SC appears good in its
line, and it increased in 2011.
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 goods sold is average,
comparing with its revenue.
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 appears average.
l
The accounts receivable of SC is
maintained in an average level.
l
The short-term loans of SC appear
average.
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 in both
years.
l
The risk for SC to go bankrupt is
average.
Overall
financial condition of the SC: Fairly Good.
CONCLUSIONS
SC is considered medium-sized in its line with fairly good
financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.98 |
|
|
1 |
Rs.83.72 |
|
Euro |
1 |
Rs.72.08 |
INFORMATION DETAILS
|
Report Prepared
by : |
NLM |
RATING EXPLANATIONS
|
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.