MIRA
INFORM REPORT
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Report Date : |
07.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
LENOVO MOBILE COMMUNICATION TECHNOLOGY LTD. |
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Registered Office : |
No. 999 Qishan North 2nd
Road, Information Photoelectronics Park, Torch Hi-Tech Industrial Development
Zone, Xiamen, Fujian Province 361006 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
04.04.2002 |
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Com. Reg. No.: |
350298400001088 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
Subject is
engaged in researching, developing, manufacturing, repairing, testing mobile communication
products, electronic information products. |
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No. of Employees : |
2000 |
RATING & COMMENTS
|
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 |
|
Status : |
Satisfactory |
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Payment Behaviour : |
Slow but Correct |
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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 |
|
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.
|
Source : CIA |
Company name & address
Lenovo Mobile Communication
Technology Ltd.
No. 999
Qishan North 2nd Road, Information Photoelectronics Park
Torch
Hi-Tech Industrial Development Zone
xiamen,
fujian PROVINCE 361006 PR CHINA
TEL: 86
(0) 592-2166836
FAX: 86
(0) 592-2166885
EXECUTIVE SUMMARY
Date of Registration : april 4, 2002
REGISTRATION NO. : 350298400001088
LEGAL FORM : Chinese-foreign equity joint venture
enterprise
CHIEF EXECUTIVE : yang yuanqing (LEGAL
REPRESENTATIVE)
REGISTERED CAPITAL :
CNY 187,500,000
staff : 2,000
BUSINESS CATEGORY :
R & D & MANUFACTURING & SERVICES
Revenue : CNY 7,106,483,000 (AS OF DEC. 31, 2011)
EQUITIES : CNY 155,518,000 (AS OF DEC. 31, 2011)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT : AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : fair
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
LEGAL
STATUS & HISTORY
***Note: SC’s headquarters locates in the heading
address, while SC’s Beijing Branch locates in the (No. 1 Lizezhong Yuan 1st
Zone, Wangjing Chaoyang Dist, Beijing).
SC was
established as a Chinese-foreign equity joint venture enterprise of PRC with
State Administration of Industry & Commerce (SAIC) under registration No.: 350298400001088 on April 4, 2002.
SC’s Organization Code Certificate No.:
70549903-2
SC’s Tax No.: 350206705499032
SC’s registered capital: CNY 187,500,000
SC’s paid-in capital: CNY 187,500,000
Registration Change Record:-
|
Date |
Change
of Contents |
Before
the change |
After
the change |
|
-- |
Registration
No. |
06579 |
350298400001088 |
|
2008-08-08 |
Registered Capital |
CNY 150,000,000 |
CNY 187,500,000 |
|
2010-02-23 |
Legal Representative |
John Huan Zhao |
Yang Yuanqing |
|
Shareholder (s) (% of
Shareholding) |
Shenzhen
Xiaoxiang Venture Capital Partnership Enterprise (Limited Partnership) 30% Ample
Growth Enterprises Limtied (B.V.I.) 15% Jade
Ahead Limited (Hong Kong) 45% Super
Pioneer Interational Limited (B.V.I.) 10% |
Lenovo
(Beijing) Co., Ltd. 30% Lenovo
Manufacturing Limited (Hong Kong) 70% |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Lenovo (Beijing) Co., Ltd. |
30 |
|
Lenovo Manufacturing Limited (Hong
Kong) |
70 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Yang Yuanqing |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name
%
of Shareholding
Lenovo (Beijing) Co., Ltd. 30
Lenovo Manufacturing Limited
(Hong Kong) 70
n
Lenovo (Beijing) Co., Ltd.
-------------------------------------
Registration No.: 110000410127232
Date of Registration: December 24, 1992
Legal Form: Wholly foreign-owned enterprise
Registered Capital: HKD 175,481,300
Legal Representative: Yang Yuanqing
n
Lenovo Manufacturing Limited (Hong
Kong)
------------------------------------------------------------
CR No.: 1246395
Date of Registration: June 12, 2008
Legal Form: Private
Status: Live
MANAGEMENT
Yang Yuanqing, Legal Representative, Chairman and General Manager
--------------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
ID# 110105196611120091
Ø
Age: 47
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as legal representative, chairman and
general manager
Also working in Lenovo (Beijing)
Co., Ltd. as legal representative
BUSINESS
OPERATION
SC’s
registered business scope includes researching, developing, manufacturing,
repairing, testing mobile communication products, electronic information
products, electronic computers, home audio-visual equipment, household
appliances and components, peripherals, software, information system and
network products; related technology introduction, technology cooperation, and
technology transfer; technology import & export, technology development,
technology services, and technology consultation.
SC is mainly engaged
in researching, developing, manufacturing, repairing, testing mobile
communication products, electronic information products.
SC’s
products mainly include: mobile communication products, electronic
information products.
SC sources its
materials 80% from domestic market, and 20% from overseas market. SC sells 70%
in domestic market and 30% to overseas market, mainly Southeast Asia, etc.
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. 2,000 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 two branches at present,
Lenovo Mobile Communication Technology Ltd. Beijing Branch
Lenovo Mobile Communication Technology Ltd. Shanghai Branch
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:
Bank
of China
AC#:
840061816908093001
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
890,823 |
724,681 |
|
|
Held for trading financial assets |
80,000 |
0 |
|
Notes receivable |
346,051 |
1,346,699 |
|
Accounts
receivable |
263,918 |
529,704 |
|
Advances to
suppliers |
52,606 |
141,985 |
|
Other receivable |
37,207 |
56,630 |
|
Inventory |
344,306 |
447,097 |
|
Deferred
expenses |
0 |
0 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
2,014,911 |
3,246,796 |
|
Long-term
investment |
45,317 |
52,335 |
|
Fixed assets |
80,718 |
98,651 |
|
Construction in
progress |
1,499 |
4,096 |
|
Intangible
assets |
7,100 |
4,140 |
|
Long-term
prepaid expenses |
41,843 |
35,149 |
|
Deferred income
tax assets |
75,683 |
153,074 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
2,267,071 |
3,594,241 |
|
|
============= |
============= |
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Short-term loans |
0 |
200,676 |
|
Notes payable |
404,776 |
473,278 |
|
Accounts payable |
925,620 |
2,005,996 |
|
Wages payable |
50,363 |
53,680 |
|
Taxes payable |
40,689 |
55,734 |
|
Advances from
clients |
42,479 |
55,255 |
|
Other payable |
37,699 |
59,885 |
|
Other current
liabilities |
277,722 |
456,594 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
1,779,348 |
3,361,098 |
|
Non-current
liabilities |
57,364 |
77,625 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
1,836,712 |
3,438,723 |
|
Equities |
430,359 |
155,518 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
2,267,071 |
3,594,241 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
|
Revenue |
4,757,578 |
7,106,483 |
|
Cost of sales |
3,881,555 |
6,300,427 |
|
Taxes and surcharges |
6,058 |
26,273 |
|
Sales expense |
505,099 |
718,133 |
|
Management expense |
377,343 |
452,676 |
|
Finance expense |
-22,880 |
-29,856 |
|
Investment
income |
2,046 |
4,785 |
|
Non-operating
income |
30,137 |
23,684 |
|
Non-operating expense |
9,855 |
17,128 |
|
Profit before
tax |
31,698 |
-343,749 |
|
Less: profit tax |
0 |
0 |
|
31,698 |
-343,749 |
Important Ratios
=============
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
*Current ratio |
1.13 |
0.97 |
|
*Quick ratio |
0.94 |
0.83 |
|
*Liabilities
to assets |
0.81 |
0.96 |
|
*Net profit
margin (%) |
0.67 |
-4.84 |
|
*Return on
total assets (%) |
1.40 |
-9.56 |
|
*Inventory /
Revenue ×365 |
27 days |
23 days |
|
*Accounts
receivable/ Revenue ×365 |
21 days |
28 days |
|
*
Revenue/Total assets |
2.10 |
1.98 |
|
* Cost of
sales / Revenue |
0.82 |
0.89 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIR
l
The revenue of SC appears fairly good, and it was
rising in 2011.
l
SC’s net profit margin is average in 2010, fair in
2011.
l
SC’s return on total assets is average in 2010,
fair in 2011.
l
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears average.
l
The accounts receivable of SC is maintained in an
average level.
l
SC’s short-term loans appear large 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 2011.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fair.
CONCLUSIONS
SC is considered large-sized in its line with fair financial
conditions. The large amount of short-term loans may be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.56.87 |
|
UK Pound |
1 |
Rs.87.65 |
|
Euro |
1 |
Rs.74.52 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.