MIRA
INFORM REPORT
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Report Date : |
19.09.2013 |
IDENTIFICATION DETAILS
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Name : |
CHANGZHOU APPLIANCE SUPPORT ENGINEERING LTD. |
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Registered Office : |
No. 1 Lijia
Industrial Zone, Wujin District, Changzhou, Jiangsu Province 213176 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
12.12.2005 |
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Com. Reg. No.: |
320400400017195 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
manufacturing, processing and selling of household accessories
including evaporator and household accessories. |
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No. of Employees : |
50 |
RATING & COMMENTS
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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 : |
No Complaints |
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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 |
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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
CHANGZHOU APPLIANCE SUPPORT ENGINEERING LTD.
NO. 1 LIJIA
INDUSTRIAL ZONE, WUJIN DISTRICT
CHANGZHOU,
JIANGSU PROVINCE 213176 PR CHINA
TEL: 86 (0)
519-86232688/86236326
FAX: 86 (0)
519-86231908
EXECUTIVE SUMMARY
Date of Registration : december 12, 2005
REGISTRATION NO. : 320400400017195
LEGAL FORM : WHOLLY
FOREIGN-OWNED enterprise
CHIEF EXECUTIVE : WAHEED HAIDER SHEIKH (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : USD 500,000
staff : 50
BUSINESS CATEGORY : manufacturing & PROCESSING
& TRADING
Revenue : CNY 31,368,000 (AS OF
DEC. 31, 2012)
EQUITIES : CNY 6,683,000 (AS OF
DEC. 31, 2012)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairLY STABLE
OPERATIONAL TREND : ordinary
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.12 = 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
SC was
established as a wholly foreign-owned enterprise of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.: 320400400017195 on December
12, 2005.
SC’s Organization Code Certificate
No.: 78125433-6
SC’s Tax No.: 320400781254336
SC’s registered capital: USD 500,000
SC’s paid-in capital: USD 500,000
Registration Change Record:-
|
Date |
Change
of Contents |
Before
the change |
After the change |
|
-- |
Registration
No. |
004381 |
320400400017195 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Waheed Haider Sheikh (Pakistan) |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and
Chairman |
Waheed Haider
Sheikh |
|
General Manager |
Yu Jianguo |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name
%
of Shareholding
Waheed Haider Sheikh (Pakistan) 100
MANAGEMENT
Waheed Haider
Sheikh, Legal
Representative and Chairman
-----------------------------------------------------------------------------
Ø
Gender: M
Ø
Nationality: Pakistan
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as legal representative and chairman
Yu Jianguo, General
Manager
-------------------------------------------------
Ø
Gender: M
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as general manager
BUSINESS OPERATION
SC’s registered
business scope includes manufacturing air-conditioners, refrigerators, ovens,
dehumidifiers, electric heater assembly, machinery, plastic and stampings;
metal cold processing; selling self-made products.
SC is mainly
engaged in manufacturing, processing and selling household accessories.
SC’s products mainly include: evaporator and household
accessories.
SC sources its materials 100%
from domestic market, mainly Jiangsu. SC sells 100% of its products to overseas
market, mainly Pakistan.
The buying terms of SC include Check, T/T and Credit of
30-60 days. The payment terms of SC include Check, T/T, L/C and Credit of 30-60
days.
*Major Supplier*
--------------------
Jiangsu Fengrun Electrical Equipment Co., Ltd.
Staff & Office:
--------------------------
SC is
known to have approx. 50 staff
at present.
SC rents an area
as its operating office and factory, but the detailed information is unknown.
RELATED COMPANY
SC is not known to have the subsidiary at present.
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 Changzhou Lijia Office
AC#:
4540978304708091001
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
3,006 |
2,843 |
|
|
Notes receivable |
0 |
0 |
|
Accounts
receivable |
-1,436 |
-133 |
|
Advances to
suppliers |
0 |
0 |
|
Other receivable |
234 |
234 |
|
Inventory |
5,040 |
2,947 |
|
Deferred
expenses |
0 |
0 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
6,844 |
5,891 |
|
Fixed assets |
1,856 |
3,003 |
|
Construction in
progress |
1,159 |
0 |
|
Intangible
assets |
0 |
0 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Total assets |
9,859 |
8,894 |
|
|
============= |
============= |
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Short-term loans |
0 |
0 |
|
Notes payable |
0 |
0 |
|
Accounts payable |
4,585 |
2,569 |
|
Wages payable |
162 |
50 |
|
Taxes payable |
-43 |
-421 |
|
Advances from
clients |
0 |
0 |
|
Other payable |
24 |
0 |
|
Accrued expense |
431 |
0 |
|
Other current
liabilities |
0 |
13 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
5,159 |
2,211 |
|
Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
5,159 |
2,211 |
|
Equities |
4,700 |
6,683 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
9,859 |
8,894 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
Revenue |
20,101 |
31,368 |
|
Cost of sales |
16,848 |
28,210 |
|
Taxes and surcharges |
29 |
69 |
|
Sales expense |
1,215 |
452 |
|
Management expense |
881 |
678 |
|
Finance expense |
86 |
79 |
|
Profit before
tax |
950 |
1,880 |
|
Less: profit tax |
0 |
235 |
|
950 |
1,645 |
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
1.33 |
2.66 |
|
*Quick ratio |
0.35 |
1.33 |
|
*Liabilities
to assets |
0.52 |
0.25 |
|
*Net profit
margin (%) |
4.73 |
5.24 |
|
*Return on total
assets (%) |
9.64 |
18.50 |
|
*Inventory /
Revenue ×365 |
92 days |
35 days |
|
*Accounts
receivable/ Revenue ×365 |
-- |
-- |
|
*
Revenue/Total assets |
2.04 |
3.53 |
|
* Cost of
sales / Revenue |
0.84 |
0.90 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l
The revenue of SC appears average, and it was
rising in 2012.
l
SC’s net profit margin is average in both years.
l
SC’s return on total assets is fairly good in both
years.
l
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in a normal
level in 2011, and fairly good in 2012.
l
SC’s quick ratio is maintained in a fair level in
2011, and fairly good in 2012.
l
The inventory of SC appears average in 2012.
l
SC has no short-term loans in both years.
l
SC’s revenue is in an
average level, comparing with the size of its total assets.
LEVERAGE:
AVERAGE
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is above average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered small-sized in its line with fairly stable
financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.14 |
|
UK Pound |
1 |
Rs.100.48 |
|
Euro |
1 |
Rs.84.37 |
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.