MIRA INFORM REPORT
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Report Date : |
28.10.2013 |
IDENTIFICATION DETAILS
|
Name : |
MICA ELECTRICAL
MATERIAL (LUHE) CO., LTD. |
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Registered Office : |
Hedong Development Zone, Hetian Town, Luhe
County Shanwei, Guangdong Province 516700 Pr |
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Country : |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
06.09.2000 |
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Com. Reg. No.: |
441500400001134 |
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Legal Form : |
Wholly
Foreign-Owned Enterprise |
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Line of Business : |
Manufacturing and Selling of Electrical Insulating Materials. |
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No. of Employees : |
344 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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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 |
|
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
MICA ELECTRICAL MATERIAL (LUHE) CO., LTD.
hedong development
zone, hetian town, luhe county
shanwei, guangdong
PROVINCE 516700 PR CHINA
TEL: 86 (0)
660-5663853
FAX: 86 (0)
660-5660995
***Note: The given
telephone No. (86 0 15989484911/86 0 755 23493847) belongs to SC’s related
company in Shenzhen.
EXECUTIVE SUMMARY
Date of Registration : september 6, 2000
REGISTRATION NO. : 441500400001134
LEGAL FORM : Wholly foreign-owned enterprise
CHIEF EXECUTIVE : GU QIN (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : hkd
62,000,000
staff :
344
BUSINESS CATEGORY : MANUFACTURING
Revenue :
CNY 78,376,000 (AS OF DEC. 31,
2012)
EQUITIES :
CNY 72,615,000 (AS OF DEC. 31, 2012)
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 6.08 = 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
SC was established
as a wholly foreign-owned enterprise
of PRC with State Administration of Industry & Commerce (SAIC) under
registration No.: 441500400001134 on
September 6, 2000.
SC’s Organization Code Certificate No.:
72478017-X
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SC’s Tax No.: 44152372478017X
SC’s Customs Registration No.: 4415944003
SC’s registered capital: hkd 62,000,000
SC’s paid-in capital: hkd 62,000,000 (CNY 56,881,723.94)
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 |
|
Von Roll Hong Kong Holding Limited |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and General Manager |
Gu Qin |
|
Chairman |
Didier Suchet |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name % of
Shareholding
Von Roll
----------------------------------------------
Date of Registration: August 9, 2007
CR No. : 1157200
Legal Form: Private
Status: Live
MANAGEMENT
Gu Qin, Legal Representative and General Manager
-----------------------------------------------------------------------------
Ø
Gender: F
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal
representative and general manager
Didier
Suchet, Chairman
--------------------------------
Ø
Gender: M
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as chairman
BUSINESS OPERATION
SC’s registered business scope includes manufacturing
mica plate, mica paper, glass fiber cloth, mica tape, mica paper, mica
stamping, mica tube, mica machined parts and fittings and other electrical
insulating materials.
SC is mainly
engaged in manufacturing and selling electrical insulating materials.
SC’s products
mainly include: mica plate, mica paper, glass fiber cloth, mica tape, mica
paper, mica stamping, mica tube.
SC sources its materials 55% from domestic market, mainly Guangdong, and 45% from overseas market, mainly India. SC sells 69% of its products in domestic market, and 31% to overseas market, mainly Hong Kong, U.S.A., Singapore, etc.
The
import & export status of SC in 2012 is as follows,
|
Country |
Amount of
Exports (USD) |
Amount of Imports (USD) |
|
India |
-- |
10,409,300 |
|
Turkey |
10,000 |
|
|
U.S.A. |
494,900 |
|
|
Singapore |
503,300 |
|
|
Germany |
40,800 |
|
|
France |
102,100 |
|
|
Italy |
816,800 |
|
|
UK |
10,000 |
|
|
Hong Kong |
1,617,300 |
|
|
|
------------------- |
------------------- |
|
Total Amount |
3,595,200 |
10,409,300 |
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 Customer:
=============
Von Roll Isola USA
Inc.
Staff & Office:
--------------------------
SC is known
to have approx. 344 staff at
present.
SC owns an area as
its operating office & factory of approx. 33,902 sq. meters at the heading
address.
RELATED COMPANY
Von Roll Shanghai Co., Ltd.
Von Roll Trading Shanghai Co., Ltd.
Shenzhen Shengbida Electric Material Co., Ltd.
New Jadwson Electrical Material (Shenzhen) Co., Ltd.
Tongcheng Xinyu Mica Products Co., Ltd.
Von Roll India Pvt Ltd.
Pearl Insulations Pvt Ltd.
Etc.
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 SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
2,808 |
3,236 |
|
|
Notes receivable |
0 |
310 |
|
Accounts
receivable |
21,604 |
21,645 |
|
Advances to
suppliers |
2,681 |
809 |
|
Other receivable |
1,054 |
890 |
|
Inventory |
20,983 |
18,545 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
87 |
23 |
|
|
------------------ |
------------------ |
|
Current assets |
49,217 |
45,458 |
|
Fixed assets |
35,810 |
36,112 |
|
Construction in
progress |
2,092 |
2,683 |
|
Intangible
assets |
12,859 |
12,796 |
|
Long-term prepaid
expenses |
50 |
30 |
|
Deferred income
tax assets |
0 |
0 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
100,028 |
97,079 |
|
|
============= |
============= |
|
Short-term loans |
0 |
0 |
|
Notes payable |
0 |
0 |
|
Accounts payable |
15,724 |
15,050 |
|
Wages payable |
2,522 |
2,352 |
|
Taxes payable |
-100 |
-179 |
|
Advances from
clients |
0 |
0 |
|
Other payable |
5,794 |
6,531 |
|
Other current
liabilities |
550 |
710 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
24,490 |
24,464 |
|
Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
24,490 |
24,464 |
|
Equities |
75,538 |
72,615 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
100,028 |
97,079 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
Revenue |
86,167 |
78,376 |
|
Cost of sales |
82,593 |
75,789 |
|
Taxes and surcharges |
337 |
328 |
|
Sales expense |
1,120 |
1,073 |
|
Management expense |
4,016 |
3,354 |
|
Finance expense |
337 |
167 |
|
Non-business
income |
100 |
33 |
|
Non-business expenditure |
262 |
76 |
|
Profit before
tax |
-2,398 |
-2,378 |
|
Less: profit tax |
40 |
545 |
|
-2,438 |
-2,923 |
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
2.01 |
1.86 |
|
*Quick ratio |
1.15 |
1.10 |
|
*Liabilities
to assets |
0.24 |
0.25 |
|
*Net profit
margin (%) |
-2.83 |
-3.73 |
|
*Return on
total assets (%) |
-2.44 |
-3.01 |
|
*Inventory /
Revenue ×365 |
89 days |
87 days |
|
*Accounts
receivable/ Revenue ×365 |
92 days |
101 days |
|
*
Revenue/Total assets |
0.86 |
0.81 |
|
* Cost of sales
/ Revenue |
0.96 |
0.97 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIR
l The revenue of SC
appears average in its line.
l SC’s net profit
margin is fair in both years.
l SC’s return on
total assets is fair in both years.
l
SC’s cost of sales is fairly high, 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 fairly good
level.
l
The inventory of SC appears large.
l
The accounts receivable of SC appears large.
l
SC has no short-term loans in both years.
l
SC’s revenue is in a fair level, comparing with the
size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fair.
CONCLUSIONS
SC is considered medium-sized in its line with fair financial
conditions. The large amount of inventory and accounts receivable may be a
threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.63 |
|
|
1 |
Rs.99.94 |
|
Euro |
1 |
Rs.84.14 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIT |
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.