MIRA
INFORM REPORT
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Report Date : |
15.06.2013 |
IDENTIFICATION DETAILS
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Name : |
BEIJING HUAHUAN
ELECTRONICS CO., LTD. |
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Registered Office : |
No. 26, Shangdi 6th Street, Haidian District, Beijing,
100085 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
29.10.1992 |
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Com. Reg. No.: |
110000001796657 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject is engaged in manufacturing and selling communication
technology products & accessories. |
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No. of Employees : |
304 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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 |
|
Insignificant |
A1 |
|
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 and address
BEIJING HUAHUAN ELECTRONICS CO., LTD.
NO. 26, SHANGDI 6TH STREET, HAIDIAN
DISTRICT, BEIJING, 100085 PR CHINA
TEL: 86 (0) 10-52046188/52046366 FAX: 86 (0) 10-52046288
EXECUTIVE SUMMARY
INCORPORATION DATE : OCT. 29, 1992
REGISTRATION NO. : 110000001796657
REGISTERED LEGAL FORM : SHARES LIMITED COMPANY
CHIEF EXECUTIVE :
MR. ZHOU LIYE (CHAIRMAN)
STAFF STRENGTH :
304
REGISTERED CAPITAL : CNY 52,429,485
BUSINESS LINE :
MANUFACTURING & TRADING
TURNOVER :
CNY 166,215,000 (CONSOLIDATED,
AS OF DEC. 31, 2012)
EQUITIES :
CNY 108,259,000 (CONSOLIDATED, AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.1387 = 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 Shares limited co. at local Administration for
Industry & Commerce (AIC - The official body of issuing and renewing
business license).
Company
Status: Shares limited co. This form of business in PR China is defined as a legal
person. Its registered capital is divided into shares of equal par value
and the co. raises capital by issuing share certificates by promotion or by
public offer. Shareholders bear limited liability to the extent of shareholding,
and the co. is liable for its debts only to the extent of its total assets.
The co has independent property of legal person and enjoys property rights
of legal person. The
characteristics of the shares limited co. are as follows: The establishment of the co. requires at least two
promoters and no more than 200, half
of whom shall be domiciled in China. Natural person are allowed to
serve as promoters. The minimum registered capital of a co. is CNY The board of directors must consist of five to nineteen
directors. If the co. raises capital by public offer, the promoters
must not subscribe less than 35% of the total shares. the promoters’ shares
are restricted to transfer- within one year of the offer. A state-owned enterprise that is restructured into a
shares limited co. must comply with the conditions & requirements
specified under the law & administrative rule.
SC’s registered business scope includes manufacturing communication
technology products and accessories; manufacturing electronic computer software
& hardware and peripherals; exporting self-made commodities; importing
machinery equipment, spare parts and raw materials needed by SC, excluding
commodities and technologies prohibited by the state; selling communication
technology products & accessories, computer software & hardware and
peripherals.
SC is mainly engaged in manufacturing and selling communication
technology products & accessories.
Mr. Zhou Liye is the legal representative and chairman of SC at present.
SC is known to have approx. 304 employees at present,
including 38 managers, 95 R&D staff, 92 marketing and after-sale service
staff, 53 production staff, 7 financial staff and 19 other-position staff.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in Beijing. The detailed premise
information is unknown.
According to SC’s website:
Miyun Production base: No. 55 Shuiyuan Road, Industrial Development
Zone, Miyun County, Beijing
Tel: 010-89090947
http://www.huahuan.com/ The design is professional and the content is
well organized. At present it is in Chinese and English versions.
Email: info@huahuan.com
; support@huahuan.com
In 2006, Huahuan officially visited Agency Share Transfer System (third
market), securities referred to as "China Central Electronics", stock
code being "430009".
Changes of its
registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
Unknown |
Registration no. |
002957 |
1100001179665 |
|
2000 |
Legal form |
Limited liabilities co. |
Present one |
|
Company name |
Beijing Huahuan Electronics Co., Ltd. |
Beijing Qinghua Huahuan Electronic Co., Ltd. |
|
|
2004-7 |
Company name |
Beijing Qinghua Huahuan Electronic Co., Ltd. |
Present one |
|
Unknown |
Registration no. |
1100001179665 |
Present one |
SC obtained ISO9001:2000 in June, 2003 and was granted CE certificate
for STM-1 ADM Mux, Ethernet to E1 converter, TDM over IP Mux, etc.. All of
products have been granted Network Access Licenses issued by the Ministry of
Information Industry (MII) of P. R. China.
Achievements and
honors:
=======================
Huahuan was appraised as
“Top 10 Chinese Most Competitive Optical Transmission and Network Access
Equipment Manufacturing Enterprises” in 2007, 2008, 2009 and 2010;
"Deloitte Technology Fast 500 Asia Pacific 2010"
“Top 50 Hi-Tech Companies” in 2006;
“100 Successful Solutions in China Communication Industry” in 2004;
“Top 10 New-tech Companies in China Communication Industry” in
2003;
“Excellent New-tech Company of Zhongguancun Science Park” in 2000.
Tax Registration Certificate No.: 11010860000278X
Organization Code: 60000278-X
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
(As of Dec. 31, 2012)
Name %
of Shareholding
Tsinghua Holdings Venture Capital Co., Ltd. 56.07
Beijing Shichuang High-tech Development Corporation (in Chinese pinyin) 9.99
China Electronic Systems Engineering Corp. 4.73
Feng Zhongxi 2.95
Man Chunyan 2.21
Ge Ning 2.01
Wang Yichao 2.00
Zhang Nan 1.95
Wu Shuiyin 1.79
Ruan Fang 1.44
Other shareholders 14.86
Tsinghua Holdings Venture Capital Co., Ltd.
=================================
Registered no.: 110108013955082
Legal representative: Zhou Liye
Registered capital: CNY 300,000,000
Tel: 010-82150989
Fax: 010-82150989
Legal
representative and Chairman:
Mr. Zhou Liye , born in 1963, with Master’s degree. 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 Tsinghua Holdings Venture Capital Co., Ltd., Tsinghua
Holdings Investment and Fund Management Company, CapitalBio Corporation,
Longjiang Environmental Protection Group Co., Ltd. as legal representative.
General manager:
Mr. Ruan Fang, born in 1963, with Master’s degree. He is currently
responsible for the daily management of SC.
Working
Experience(s):
At present Working
in SC as general manager.
Also working in Beijing Huahuan Electronic Equipment Co., Ltd. and
Beijing Fanhao Technology Co., Ltd. as legal representative.
Vice general
managers:
Wang Yichao
Zhang Nan
Feng Xiaoming
Etc.
Directors:
Li Yanhe
Zhou Haiying
Liu Jianhua
Han Caimian
Feng Zhongxi
Supervisors:
Feng Zhenming
Zhou Yanhua
SC is mainly engaged in manufacturing and selling communication
technology products & accessories.
SC’s products mainly include SDH/MSTP Multiplexer, PCM Multiplexer/FOM,
etc.
SC sources its materials 50% from domestic market, and 50% from overseas
market. SC sells 90% of its products in domestic market, and 10% 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 Customers:
==============
Kunming Aidien Network Communication System Co., Ltd.
Changsha Hongda Technology Development Co., Ltd.
*Major Suppliers:
==============
NanPi County SaiGe Electrical Products Co., Ltd.
Beijing Dawei Huawang Technology Co., Ltd.
Shenzhen Xixun Electric Co., Ltd.
Hebei Hymax Optoelectronic Inc.
Tsinghua Holdings Investment and Fund Management Company
CapitalBio Corporation
Longjiang Environmental Protection Group Co., Ltd.
SC is known to
invest in the following companies:
Beijing Huahuan Electronic Equipment Co., Ltd.
Beijing Tsinghua Security Technologies Co., Ltd.
Beijing Fanhao Technology Co., Ltd.
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’s suppliers 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.
SC’s management declined to release its bank details.
Consolidated
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31,
2012 |
as of Dec. 31,
2011 |
|
Cash & bank |
34,569 |
29,574 |
|
Bills receivable |
0 |
0 |
|
Accounts receivable |
47,857 |
27,553 |
|
Other receivables |
996 |
533 |
|
Advances to suppliers |
1,089 |
1,270 |
|
Inventory |
66,229 |
73,158 |
|
Other current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
150,740 |
132,088 |
|
Fixed assets net value |
25,163 |
22,996 |
|
Projects under construction |
0 |
3,582 |
|
Long term investment |
0 |
589 |
|
Intangible assets |
1,585 |
1,686 |
|
Other assets |
346 |
298 |
|
|
------------------ |
------------------ |
|
Total assets |
177,834 |
161,239 |
|
|
============= |
============= |
|
Short loans |
22,000 |
15,000 |
|
Accounts payable |
26,405 |
26,174 |
|
Advances from clients |
8,003 |
6,701 |
|
Accrued payable |
8,130 |
7,576 |
|
Tax payable |
3,073 |
4,184 |
|
Other accounts payable |
1,964 |
2,871 |
|
Other current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current liabilities |
69,575 |
62,506 |
|
Other non-current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total liabilities |
69,575 |
62,506 |
|
Equities |
108,259 |
98,733 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
177,834 |
161,239 |
|
|
============= |
============= |
Consolidated
Income Statement
Unit: CNY’000
|
|
as of Dec. 31,
2012 |
as of Dec. 31,
2011 |
|
Turnover |
166,215 |
162,739 |
|
Cost of goods sold |
90,382 |
96,337 |
|
Sales expense |
22,617 |
18,338 |
|
Management expense |
37,893 |
31,423 |
|
Finance expense |
1,422 |
495 |
|
Investment income |
-296 |
-119 |
|
Profit before tax |
15,149 |
15,462 |
|
Less: profit tax |
1,428 |
2,109 |
|
Profits |
13,721 |
13,353 |
Important Ratios
=============
|
|
as of Dec. 31,
2012 |
as of Dec. 31,
2011 |
|
*Current ratio |
2.17 |
2.11 |
|
*Quick ratio |
1.21 |
0.94 |
|
*Liabilities to assets |
0.39 |
0.39 |
|
*Net profit margin (%) |
8.25 |
8.21 |
|
*Return on total assets (%) |
7.72 |
8.28 |
|
*Inventory /Turnover ×365 |
146 days |
165 days |
|
*Accounts receivable/Turnover ×365 |
106 days |
62 days |
|
*Turnover/Total assets |
0.93 |
1.01 |
|
* Cost of goods sold/Turnover |
0.54 |
0.59 |
PROFITABILITY:
FAIRLY GOOD
The turnover of SC appears fairly good in its line.
SC’s net profit margin is fairly good in both years.
SC’s return on total assets is fairly good in both years.
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a fairly good level.
SC’s quick ratio is maintained in a normal level.
The inventory of SC is fairly large.
The accounts receivable of SC is average.
SC’s short-term loan appears average in both years.
SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: FAIRLY
GOOD
The debt ratio of SC is low.
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 inventory could be a threat to SC’s financial
condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.57.74 |
|
|
1 |
Rs.90.64 |
|
Euro |
1 |
Rs.77.02 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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.