MIRA INFORM REPORT
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Report Date : |
20.03.2013 |
IDENTIFICATION DETAILS
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Name : |
HUANGSHI
DONGBEI ELECTRICAL APPLIANCE CO., LTD. |
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Registered Office : |
NO. 5, Wuhuang Road, Tieshan District, Huangshi, Hubei Province, 435006 PR |
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Country : |
China |
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Financials (as on) : |
30.09.2012 |
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Date of Incorporation : |
10.03.1999 |
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Com. Reg. No.: |
420000400004635 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing
and selling plunger type hermetically sealed compressors. |
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No. of Employees : |
3,653 |
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 |
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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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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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.
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Source : CIA |
Company
name and address
HUANGSHI DONGBEI ELECTRICAL
APPLIANCE CO., LTD.
NO. 5, WUHUANG ROAD, TIESHAN DISTRICT,
HUANGSHI, HUBEI PROVINCE, 435006 PR CHINA
TEL: 86 (0) 714-5431873 FAX:
86 (0) 714-5420558
EXECUTIVE SUMMARY
INCORPORATION DATE : MAR. 10, 1999
REGISTRATION NO. : 420000400004635
REGISTERED LEGAL FORM :
SHARES LIMITED COMPANY
STAFF STRENGTH : 3,653
REGISTERED CAPITAL :
CNY 235,000,000
BUSINESS LINE : MANUFACTURING
TURNOVER :
CNY 3,337,471,000 (CONSOLIDATED,
JAN. 1 TO SEP. 30, 2012)
EQUITIES :
CNY 897,127,000 (CONSOLIDATED, AS OF SEP. 30, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : WELL KNOWN
EXCHANGE RATE : CNY 6.2215= USD
Adopted
abbreviations:
ANS -
amount not stated
NS -
not stated
SC -
subject company (the company inquired by you)
NA - not available
CNY - China Yuan Ren Min Bi
SC was registered as a
shares limited company at local Administration for Industry & Commerce (AIC
- The official body of issuing and renewing business license) on Mar. 10, 1999.
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 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 and selling refrigeration compressors and
compressor motors; developing, manufacturing and consulting of high-tech
products.
SC is
mainly engaged in manufacturing and selling plunger type hermetically sealed
compressors.
Mr.
Yang Baichang has been legal representative and chairman of SC since 2005.
SC is
known to have approx. 3,653 employees at present, including 3,296
production staff, 161 technicians, 141 management staff, 40 sales
representatives and 15 financial staff.
SC is currently operating at the above stated address, and this
address houses its operating office and factory in the industrial zone of
Huangshi. Our checks reveal that SC owns the total premise about 140,000 square
meters.
SC also has another address located in No. 6, East of Jinshan
Road, Economic and Technological Development Zone, Huangshi, Hubei Province
http://www.donper.com
It is the website of SC’s parent company Huangshi Dongbei Mech-Electrical Group
Co., Ltd. The design is professional and the content is well organized. At
present it is in Chinese, English and other language versions.
E-mail: stock@donper.com
SC was listed in the Shanghai Stock Exchange in 1999 with
stock code of 900956.
SC was ISO9001 certified in 1996, ISO9000: 2000 certified in
2001, and ISO14000 certified in 2003.
In 2004, SC was awarded prize of UNDP/GEF, and the appraisal
of the State Environmental Protection Administration of China, which drove the
technical progress of the whole compressor industry and improved the integral
level of homemade compressors.
SC’s former registration no. was 002678.
Tax Registration Certificate No.: 420205710920880
Organization Code: 71092088-0
MAIN SHAREHOLDERS (As
of June 30, 2012):
Name %
of Shareholding
Huangshi Dongbei Mech-Electrical
Group Co., Ltd.
50.04
Sun Menglin
1.15
Changzhou ZEC Co., Ltd.
0.34
Shenyin Wanguo Nominees (H.K.)
Ltd.
0.29
Buy Easy International Co.,
Limited 0.27
Jiang Liping
0.27
Wang Yujie
0.19
Zhang Zhiping
0.19
Jiang Zhongfa
0.18
Wuhan Xinhua Stamping Co., Ltd.
0.17
Other shareholders:
46.91
Huangshi Dongbei Mech-Electrical
Group Co., Ltd.
=====================================
Huangshi Dongbei Mech-Electrical Group Co., Ltd. is a
large-scaled professional corporation in researching, developing, producing and
selling refrigeration compressors. It was established in 1966. In 1994, it was
reunited to be a group company and now the group is consisted of 7 share
controlling companies, there are 6,000 staffs including 600 technicians. The
headquarters was located in the scenic spot of the well-known Dongfangshan hill
and it invested two new factories in Wuhu city of Anhui province and in Daye of
Huangshi city.
The main product of the group is refrigeration compressor;
simultaneously, it also researches and produces refrigeration equipments such
as juice dispenser, ice maker, ice cream machine as well castings, solar energy
products and fiber communication component.
The company is also known as Huangshi Donper M & E Group
Co., Ltd.
Registration No.: 420200010008834
Legal representative: Yang Baichang
Add: No. 5, Wuhuang Road, Tieshan District, Huangshi City,
Hubei Province
Tel: 86-0714-5416688
E-Mail: donper@donper.com
l Legal
representative and chairman:
Mr.
Yang Baichang, born in 1955, with master’s degree, senior economist. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 2005 to present Working in SC as legal
representative and chairman
Also working in Huangshi
Dongbei Mech-Electrical Group Co., Ltd. as chairman & legal representative;
Huangshi Donper M & E Group Solar Energy Co., Ltd., Wuhu Abaur Mechanical
& Electrical Co., Ltd. and Huangshi Donper Casting Co., Ltd. as legal
representative.
l General
Manager and Director:
Mr. Fang Zeyun, born in 1964,
with master’s degree. He is currently responsible for the daily management of
SC.
Working Experience(s):
Worked in SC as vice
general manager, Dongbei Group Research Institute as president and Huangshi
Dongbei Refrigeration Co., Ltd. as general manager
From May, 2008 to
present Working in SC as
general manager and director
l Directors:
Zhao Dayou
Zhu Jinming
Liao Han’gang
Ruan Zhengya
Yu Yumiao
Lu Yanying
l Supervisors:
Jiang Min
Wang Huasheng
Jiang Zhian
SC is
mainly engaged in manufacturing and selling plunger type hermetically sealed
compressors.
SC’s
products mainly include: reciprocating hermetic refrigerating compressor of 1/14HP
~ 3HP, which are to produce R
SC
sources its materials 80% from domestic market, and 20% from the overseas
market, mainly European countries. SC sells 85% of its products in domestic
market, and 15% to the overseas market, mainly American and European countries.
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, L/C and Credit of 30-60 days.
*Major Clients:
============
Huangshi Dongbei Mech-Electrical
Group Co., Ltd.
Huangshi Dongbei Refrigeration
Co., Ltd.
Note: SC’s management declined to release its major suppliers.
SC is known to have the following subsidiaries:
Huangshi Sunshine Opto-Electronic Co., Ltd.
Huangshi Donper Mech-Electrical Group Solar Energy Co., Ltd.
Wuhu Abaur Mechanical & Electrical Co., Ltd.
Huangshi Donper Casting 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
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.
SC refused
to release any information about its bank.
Consolidated
Balance Sheet
Unit:
CNY’000
|
|
as of Dec. 31, 2011 |
As of Sep. 30, 2012 |
|
Cash
& bank |
462,226 |
559,999 |
|
Notes
receivable |
750,350 |
656,645 |
|
Inventory |
448,835 |
380,381 |
|
Accounts
receivable |
745,192 |
911,374 |
|
Advances
to supplies |
142,583 |
128,719 |
|
Other
receivables |
14,925 |
15,621 |
|
Other
current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
assets |
2,564,111 |
2,652,739 |
|
Long-term
investments |
83,887 |
82,064 |
|
Investment
property |
4,207 |
4,083 |
|
Fixed
assets net value |
945,638 |
916,658 |
|
Projects
under construction |
351 |
25,399 |
|
Intangible
assets |
77,749 |
76,276 |
|
Deferred
income tax assets |
7,400 |
8,021 |
|
Other
assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Total
assets |
3,683,343 |
3,765,240 |
|
|
============= |
============= |
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Short
loans |
936,675 |
774,784 |
|
Notes
payable |
781,686 |
806,633 |
|
Accounts
payable |
819,227 |
973,362 |
|
Advances
from customers |
16,278 |
14,852 |
|
Accrued
Payroll |
21,200 |
25,058 |
|
Taxes
payable |
6,218 |
24,762 |
|
Dividend
payable |
10,733 |
10,009 |
|
Other
accounts payable |
83,508 |
94,394 |
|
Non-current
liability due within one years |
7,561 |
7,561 |
|
Other
current liabilities |
0 |
0 |
|
|
----------------- |
----------------- |
|
Current
liabilities |
2,683,086 |
2,731,415 |
|
Long
term liabilities |
137,518 |
136,698 |
|
|
------------------ |
------------------ |
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Total
liabilities |
2,820,604 |
2,868,113 |
|
Shareholders
equities |
862,739 |
897,127 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
3,683,343 |
3,765,240 |
|
|
============= |
============= |
Consolidated
Income Statement
Unit:
CNY’000
|
|
as of Dec. 31, 2011 |
Jan. 1 to Sep. 30, 2012 |
|
Turnover |
3,995,831 |
3,337,471 |
|
Cost
of goods sold |
3,583,318 |
2,980,280 |
|
Taxes
and additional of main operation |
7,735 |
13,270 |
|
Sales expense |
85,167 |
94,877 |
|
Management expense |
159,220 |
122,849 |
|
Finance expense |
73,367 |
61,555 |
|
Asset
impairment loss |
-225 |
5,147 |
|
Investment
income |
-1,805 |
-1,823 |
|
Non-operating
income |
18,627 |
12,924 |
|
Non-operating expense |
9,505 |
2,430 |
|
Profit
before tax |
94,566 |
68,164 |
|
Less:
profit tax |
16,799 |
10,709 |
|
Net
profit |
77,767 |
57,455 |
Important
Ratios
=============
|
|
As of Dec. 31, 2011 |
As of Sep. 30, 2012 |
|
*Current
ratio |
0.96 |
0.97 |
|
*Quick
ratio |
0.79 |
0.83 |
|
*Liabilities
to assets |
0.77 |
0.76 |
|
*Net
profit margin (%) |
1.95 |
1.72 |
|
*Return
on total assets (%) |
2.11 |
1.53 |
|
*Inventory
/Turnover ×365 |
42 days
|
/ |
|
*Accounts
receivable/Turnover ×365 |
69 days
|
/ |
|
*Turnover/Total
assets |
1.08 |
0.89 |
|
*
Cost of goods sold/Turnover |
0.90 |
0.89 |
PROFITABILITY:
FAIRLY GOOD
l The
turnover of SC appears good.
l SC’s
net profit margin is average.
l SC’s
return on total assets is average.
l
SC’s cost of goods sold is average,
comparing with its turnover.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained
in a fair level.
l
SC’s quick ratio is maintained in a
fair level in 2011, and in a normal level as of Sep. 30, 2012.
l
The inventory of SC is average.
l
The accounts receivable of SC is
average.
l
The short term loan of SC is large.
l
SC’s turnover is in an average level,
comparing with the size of its total assets.
LEVERAGE:
AVERAGE
l
The debt ratio of SC is fairly high.
l
The risk for SC to go bankrupt is low.
Overall
financial condition of the SC: Fairly Stable.
SC is well-known in its industry with fairly stable
financial conditions. The large amount of short loans could be a threat to SC’s
financial conditions.
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.26 |
|
UK Pound |
1 |
Rs.81.94 |
|
Euro |
1 |
Rs.70.21 |
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 |
|
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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.