MIRA INFORM REPORT
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Report Date : |
19.09.2013 |
IDENTIFICATION DETAILS
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Name : |
YUEQING SANDI ELECTRIC CO.,
LTD. |
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Registered Office : |
5/F, NO. 95, Hexie
Road, Shangyou Village, Liushi Town, Yueqing, Zhejiang Province,
325604 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
26.08.2008 |
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Com. Reg. No.: |
330382000053398 |
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Legal Form : |
Limited liabilities co. |
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Line of Business : |
Subject is engaged in selling power supply products. |
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No. of Employees : |
04 |
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 |
|
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
YUEQING SANDI ELECTRIC CO., LTD.
5/F, NO. 95, HEXIE ROAD, SHANGYOU VILLAGE,
LIUSHI TOWN, YUEQING,
ZHEJIANG PROVINCE, 325604 PR CHINA
TEL: 86 (0) 577-62793760/27879316
FAX: 86 (0) 577-61209955/27873806
EXECUTIVE SUMMARY
INCORPORATION DATE : AUG. 26, 2008
REGISTRATION NO. : 330382000053398
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
CHIEF EXECUTIVE :
YI HAIXIA (CHAIRMAN)
STAFF STRENGTH :
4
REGISTERED CAPITAL : CNY 800,000
BUSINESS LINE : TRADING
TURNOVER :
CNY 2,770,000 (AS OF DEC. 31,
2012)
EQUITIES :
CNY 320,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : FAIR
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.12= 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
Note: The “Lvao Industrial Zone, Liushi Town, Yueqing, Zhejiang Province” was the former one.
SC was registered as a Limited liabilities co. at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Aug. 26, 2008.
Company Status: Limited liabilities co. This form of
business in PR China is defined as a legal person. No more than fifty shareholders contribute its registered
capital jointly. Shareholders bear limited liability to the extent of
shareholding, and the co. is liable for its debts only to extent of its
total assets. The characteristics of this form of co. are as follows: Upon the
establishment of the co., an investment certificate is issued to the each
of shareholders. The board of
directors is comprised of three to thirteen members. The minimum
registered capital for a co. is CNY 30,000. Shareholders may
take their capital contributions in cash or by means of tangible assets or
intangible assets such as industrial property and non-patented technology. Cash contributed
by all shareholders must account for at least 30% of the registered
capital. Existing
shareholders have pre-exemption right to purchase shares of the co. offered
for sale by the other shareholders and to subscribe for the newly increased
registered capital of the co.
SC’s registered business scope includes manufacturing, processing and selling power distribution switch control equipment, inverter and high & low voltage complete sets of cabinet; selling hardware, machinery equipment, instruments, wire & cable, auto parts, motorcycle spare parts, low voltage electrical appliances and electrical accessories; importing and exporting commodities and technologies.
SC is mainly engaged in selling power supply products.
Yi Haixia is the
legal representative, chairman and general manager of SC at present.
SC is known to have approx. 4 employees at present.
SC is currently operating at the above stated address, and this address houses its operating office in Yueqing. The detailed premise information is unknown.
http://www.lgis.cc/ The design is professional and the content is well organized. At present the web site is in Chinese, English and other versions.
Email: tisandi@sandi.cc
No significant events or changes were found during our checks with the local Administration for Industry and Commerce.
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name % of Shareholding
Yi Haixia 49
Zhou Jun 51
Legal Representative, Chairman and General Manager:
Yi Haixia is currently responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as legal representative, chairman and general manager.
Also working in Yueqing Bangzhao Electric Co., Ltd. as legal representative.
Supervisor:
Zhou Jun
SC is mainly engaged in selling power supply products.
SC’s products mainly include: PV Grid-Connected Inverter, Wind-Solar Hybrid Controller, etc.
SC sources its materials 60% from domestic market and 40% from overseas market. SC sells 70% of it products in domestic market and 30% 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 T/T, L/C, Check and Credit of 30-60 days.
Note: SC declined to
release its major suppliers and clients.
Yueqing Bangzhao Electric Co., Ltd.
Registered no.: 330382000259378
Legal representative: Yi Haixia
Establishment date:
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.
The banking information of SC is unknown.
Balance Sheet
Unit: CNY’000
|
|
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
|
Cash & bank |
640 |
150 |
|
Accounts receivable |
690 |
160 |
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Advances to suppliers |
0 |
10 |
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Other receivables |
80 |
0 |
|
Inventory |
10 |
80 |
|
Export drawback receivable |
70 |
130 |
|
Other current assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
1,490 |
530 |
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Fixed assets net value |
200 |
210 |
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Long term investment |
0 |
0 |
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Projects under construction |
0 |
0 |
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Intangible and other assets |
0 |
0 |
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|
------------------ |
------------------ |
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Total assets |
1,690 |
740 |
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|
=========== |
=========== |
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Short loan |
0 |
0 |
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Accounts payable |
310 |
350 |
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Advances from clients |
1,020 |
80 |
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Taxes payable |
0 |
-20 |
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Other Accounts payable |
10 |
10 |
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Other current liabilities |
0 |
0 |
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------------------ |
------------------ |
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Current liabilities |
1,340 |
420 |
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Long term liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total liabilities |
1,340 |
420 |
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Equities |
350 |
320 |
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------------------ |
------------------ |
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Total liabilities & equities |
1,690 |
740 |
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|
=========== |
=========== |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31, 2012 |
|
Turnover |
2,770 |
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Cost of goods sold |
2,270 |
|
Sales expense |
260 |
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Management expense |
270 |
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Finance expense |
0 |
|
Profit before tax |
-30 |
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Less: profit tax |
0 |
|
Profits |
-30 |
Important Ratios
=============
|
|
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
|
*Current ratio |
1.11 |
1.26 |
|
*Quick ratio |
1.10 |
1.07 |
|
*Liabilities to assets |
0.79 |
0.57 |
|
*Net profit margin (%) |
/ |
-1.08 |
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*Return on total assets (%) |
/ |
-4.05 |
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*Inventory /Turnover ×365 |
/ |
11 days |
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*Accounts receivable/Turnover ×365 |
/ |
22 days |
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*Turnover/Total assets |
/ |
3.74 |
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* Cost of goods sold/Turnover |
/ |
0.82 |
PROFITABILITY: FAIR
The turnover of SC appears average in 2012.
SC’s net profit margin is fair in 2012.
SC’s return on total assets is fair in 2012.
SC’s cost of goods sold is average, comparing with its turnover in 2012.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a normal level.
The inventory of SC appears average.
The accounts receivable of SC appears fairly large in 2011 and average in 2012.
SC has no short-term loan in both years.
SC’s turnover is in a fairly good level, comparing with the size of its total assets in 2012.
LEVERAGE: AVERAGE
The debt ratio of SC is fairly high in 2011 and average in 2012.
The risk for SC to go bankrupt is average.
Overall financial condition of the SC: Fair.
SC is considered small-sized in its line with fair financial conditions. A credit line up to USD 2,000 would appear to be within SC’s capacities upon a periodical review basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.14 |
|
|
1 |
Rs.100.48 |
|
Euro |
1 |
Rs.84.37 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
RATING EXPLANATIONS
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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 |
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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 |
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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.