MIRA
INFORM REPORT
|
Report Date : |
28.01.2013 |
IDENTIFICATION DETAILS
|
Name : |
KEDA INDUSTRIAL CO., LTD. |
|
|
|
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Registered Office : |
No. 1 Huanzhen West Road, Guanglong Industry Park, Chencun
Town, Shunde District, Foshan, Guangdong Province 528313 Pr |
|
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Country : |
China |
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|
|
Financials (as on) : |
30.09.2012 |
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|
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Date of Incorporation : |
11.12.1996 |
|
|
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Com. Reg. No.: |
440000000016993 |
|
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|
|
Legal Form : |
Shares Limited Company |
|
|
|
|
Line of Business : |
Manufacturing and selling mechanical equipment |
|
|
|
|
No. of Employees : |
3,803 |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
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 (31.03.2011) |
Current Rating (30.06.2012) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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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
KEDA INDUSTRIAL CO., LTD.
NO. 1 HUANZHEN WEST ROAD, GUANGLONG INDUSTRY PARK, CHENCUN
TOWN, SHUNDE DISTRICT, FOSHAN, GUANGDONG PROVINCE 528313 PR CHINA
TEL: 86 (0) 757-23832922
FAX: 86 (0) 757-23836392/23832690
EXECUTIVE SUMMARY
Date of Registration : DECember 11, 1996
REGISTRATION NO. : 440000000016993
LEGAL FORM : SHARES LIMITED COMPANY
REGISTERED CAPITAL : cny 651,667,000
staff :
3,803
BUSINESS CATEGORY : manufacturing
REVENUE :
CNY 1,889,746,000 (CONSOLIDATED, JAN. 1 2012 TO SEP. 30, 2012)
EQUITIES :
CNY 2,570,082,000 (CONSOLIDATED, AS OF SEP. 30, 2012)
WEBSITE : www.kedagroup.com
E-MAIL : ied@kedachina.com.cn
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly
good
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : FAIRLY
GOOD
EXCHANGE RATE :
CNY 6.22 = 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
***Note: The “Dadu
Industrial Zone, Chencun Town, Shunde District, Foshan” was SC’s former address
and the current address should be the heading one. The given number 0757-2382929
is uncompleted.
SC was established
as a shares limited company of
PRC with State Administration of Industry & Commerce (SAIC) under
registration No.: 440000000016993
on December 11, 1996.
SC’s Organization Code Certificate No.:
23192348-6
SC’s registered capital: cny 651,667,000
SC’s paid-in capital: cny 651,667,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Registered capital |
CNY 607,082,000 |
cny 651,667,000 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) (As of August 8, 2012) |
% of Shareholding |
|
Lu Qin |
16.73 |
|
Bian Cheng |
7.31 |
|
China Ping An Trust Co., Ltd.-Ruifu 2# |
2.50 |
|
Xinhua Life Insurance Co., Ltd. -
Dividend-Team Dividend |
1.45 |
|
Bank of China-Huaxia Return Security
Investment Fund |
1.33 |
|
Wu Yingzhen |
1.13 |
|
Liang Tongcan |
1.10 |
|
Shen Xiaohe |
1.00 |
|
Bank of China-Huaxia Return No. 2 Security
Investment Fund |
0.76 |
|
Xu Shunwu |
0.75 |
|
Other Shareholders |
65.94 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Bian Cheng |
|
CEO |
Wu Muhai |
|
Vice CEO |
Zhou Zubing |
|
Shen Xiaohe |
|
|
Xu Jianqing |
|
|
Liu Xin |
RECENT DEVELOPMENT
SC is a listed company in Shanghai Stock Exchange Market with the code
of 600499
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
(As of August 8, 2012)
----------------------------------
Lu Qin 16.73
Bian Cheng 7.31
China Ping An Trust Co., Ltd.-Ruifu 2# 2.50
Xinhua Life Insurance Co., Ltd. -
Dividend-Team Dividend
Bank of China-Huaxia Return Security Investment
Fund 1.33
Wu Yingzhen 1.13
Liang Tongcan 1.10
Shen Xiaohe 1.00
Bank of China-Huaxia Return No. 2 Security
Investment Fund 0.76
Xu Shunwu 0.75
Other Shareholders 65.94
MANAGEMENT
Bian
Cheng, Legal Representative and Chairman
------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 49
Ø
Qualification:
Master degree
Ø
Working
experience (s):
At present, working in SC as legal representative and
chairman, also working in Foshan Keda Stone-Machine Co., Ltd. as director;
working in Maanshan Keda Mechanical and Electrical Co., Ltd., Maanshan New
Power Jieneng Co., Ltd. as chairman
Wu
Muhai, CEO
----------------------------------
Ø
Gender: M
Ø
Age: 40
Ø
Qualification:
University
Ø
Working
experience (s):
Before, worked in SC as vice CEO
From 2012 to present, worked in SC as CEO
Zhou
Zubing , Vice CEO
-------------------------------------------
Ø
Gender: M
Ø
Age: 41
Ø
Working
experience (s):
From 2012 to present, working in SC as vice CEO
Shen Xiaohe , Vice CEO
-------------------------------------------
Ø
Gender: M
Ø
Age: 46
Ø
Qualification:
Master degree
Ø
Working
experience (s):
From 2012 to present, working in SC as vice CEO
Xu Jianqing , Vice CEO
------------------------------------------
Ø
Gender: M
Ø
Age: 48
Ø
Qualification:
EMBA
Ø
Working
experience (s):
From 2012 to present, working in SC as vice CEO, also
working in Foshan Keda Hydraulic Machinery Co., Ltd. as chairman
Liu Xin , Vice CEO
---------------------------------
Ø
Gender: M
Ø
Age: 45
Ø
Qualification:
Master degree
Ø
Working
experience (s):
From 2012 to present, working in SC as vice CEO, also
working in Keda Clean Energy (Ma'anshan) Co., Ltd. as general manager
BUSINESS OPERATION
SC’s registered business scope manufacturing ceramic mechanical
equipment, stone material mechanical equipment, wall material mechanical
equipment and energy saving & environmental protection mechanical equipment
; researching, developing and manufacturing automation technology and
equipment; selling mechanical & electronic parts, grinding wheel abrasive,
abrasive and ceramic products; exporting self-made commodities and
technologies; importing raw materials, machinery equipment, instruments, spare
parts and related technologies needed in manufacturing and researching
(excluding commodities prohibited by the state); processing with imported
materials, processing with imported samples, assembling with imported parts,
and compensation trade in agreement.
SC is mainly
engaged in manufacturing and selling mechanical equipment.
Brand: KEDA
SC’s products
mainly include: ceramic mechanical equipment, wall materials technology
equipment, etc.
SC sources its materials 50% from domestic
market, and 50% from overseas market. SC sells 60% of its products in domestic
market and 40% 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.
*Major Customer:
=============
Wanfeng Compound
Stone Technology Co., Ltd.
Guangdong Gold
Medal Ceramics Co., Ltd.
Hongchang
International Trade Co., Ltd.
Guangdong Ouwen
Ceramics Co., Ltd.
Xingxing Hongji
Ceramics Co., Ltd.
*Major Suppliers:
=============
Shaoguan Jiafa Electromechanical Industrial Co., Ltd.
Shaoguan Huarong Machinery Co., Ltd.
Shanghai Hai Tuosi Hydraulisk Utstyr Co., Ltd.
Staff & Office:
--------------------------
SC is known
to have approx. 3,803 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
Foshan Keda Stone-Machine Co., Ltd.
n
Maanshan Keda Mechanical and Electrical Co., Ltd.
n
Maanshan Keda Jieneng Co., Ltd.
n
Emeishan Keda Jieneng Co., Ltd.
n
Linyi Keda Clean Energy Co., Ltd.
n
Shenyang Keda Jieneng Gas Co., Ltd.
n
Foshan Keda Jieneng Co., Ltd.
n
Foshan Keda Hydraulic Machinery Co., Ltd.
n
Keda Industrial (Hong Kong) Limited
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’s supplier
refused to make any comments.
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.
FINANCIALS
Consolidated Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Sep. 30, 2012 |
|
794,599 |
469,551 |
|
|
Trading financial assets |
0 |
0 |
|
Accounts
receivable |
214,346 |
268,690 |
|
Notes receivable |
48,929 |
43,629 |
|
Advances to
suppliers |
92,481 |
102,301 |
|
Interest
receivable |
1,557 |
0 |
|
Other receivable |
26,070 |
34,153 |
|
Inventory |
830,295 |
838,124 |
|
Non-current
assets within one year |
610,043 |
603,464 |
|
Other current
assets |
90,498 |
90,983 |
|
|
------------------ |
------------------ |
|
Current assets |
2,708,818 |
2,450,895 |
|
Long-term
investments |
78,568 |
119,254 |
|
Long-term
receivable |
178,711 |
147,836 |
|
Real estate
investment |
0 |
0 |
|
Fixed assets |
718,726 |
781,605 |
|
Construction in
progress |
537,173 |
737,000 |
|
Project
materials |
0 |
0 |
|
Fixed assets in
liquidation |
0 |
0 |
|
Intangible
assets |
288,947 |
325,969 |
|
Goodwill |
187,916 |
395,835 |
|
Long-term
deferred expense |
0 |
0 |
|
Deferred income
tax assets |
6,891 |
11,315 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
4,705,750 |
4,969,709 |
|
|
============= |
============= |
|
Short-term loans |
285,000 |
117,059 |
|
Notes payable |
159,636 |
136,976 |
|
Accounts payable |
536,380 |
584,578 |
|
Payroll payable |
33,217 |
30,775 |
|
Taxes payable |
77,186 |
34,211 |
|
Interest payable |
0 |
0 |
|
Advances from
clients |
469,425 |
423,089 |
|
Other payable |
73,322 |
77,157 |
|
Other current
liabilities |
370,409 |
217,227 |
|
|
------------------ |
------------------ |
|
Current liabilities |
2,004,575 |
1,621,072 |
|
Non-current
liabilities |
463,878 |
778,555 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
2,468,453 |
2,399,627 |
|
Equities |
2,237,297 |
2,570,082 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
4,705,750 |
4,969,709 |
|
|
============= |
============= |
Consolidated Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
Jan.
1 2012 to Sep. 30, 2012 |
|
Revenue |
2,492,549 |
1,889,746 |
|
Cost of sales |
2,024,971 |
1,451,655 |
|
Business Taxes and Surcharges |
16,836 |
15,956 |
|
Sales expense |
110,250 |
90,650 |
|
Management expense |
167,775 |
138,863 |
|
Finance expense |
14,290 |
2,970 |
|
Asset impairment loss |
1,106 |
5,652 |
|
Investment
income |
281,254 |
32,685 |
|
Non-operating
income |
24,949 |
22,071 |
|
Non-operating expense |
46,574 |
485 |
|
Profit before
tax |
416,946 |
238,269 |
|
Less: profit tax |
68,278 |
37,109 |
|
348,668 |
201,160 |
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Sep. 30, 2012 |
|
*Current ratio |
1.35 |
1.51 |
|
*Quick ratio |
0.94 |
0.99 |
|
*Liabilities
to assets |
0.52 |
0.48 |
|
*Net profit
margin (%) |
13.99 |
10.64 |
|
*Return on
total assets (%) |
7.41 |
4.05 |
|
*Inventory /
Revenue ×365/270 |
122 days |
120 days |
|
*Accounts
receivable/ Revenue ×365/270 |
32 days |
39 days |
|
*
Revenue/Total assets |
0.53 |
0.38 |
|
* Cost of
sales / Revenue |
0.81 |
0.77 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l
The revenue of SC appears good in its line.
l
SC’s net profit margin is fairly good.
l
SC’s return on total assets is fairly good.
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.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears fairly large.
l
The accounts receivable of SC appears average.
l
The short-term loans of SC appear average.
l
SC’s revenue is in a fair level, comparing with the
size of its total assets.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly Good.
CONCLUSIONS
SC is considered large-sized in its line with fairly good financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.85 |
|
|
1 |
Rs.85.25 |
|
Euro |
1 |
Rs.71.72 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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.