MIRA INFORM REPORT
|
Report Date : |
25.09.2013 |
IDENTIFICATION DETAILS
|
Name : |
GALANZ (ZHONGSHAN) ELECTRICAL APPLIANCES
LTD |
|
|
|
|
Registered Office : |
No. 3 East Xingpu Road, Huangpu Town, Zhongshan Guangdong
Province 528429 PR |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
02.02.2005 |
|
|
|
|
Com. Reg. No.: |
442000400004130 |
|
|
|
|
Legal Form : |
Chinese-foreign
equity joint venture enterprise |
|
|
|
|
Line of Business : |
Manufacturing and selling household appliance, commercial
air-conditioning, hardware electrical accessories, plastic parts and
providing after-sales service for its owned products. |
|
|
|
|
No. of Employees : |
4,149 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
|
|
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 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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
GALANZ (ZHONGSHAN)
ELECTRICAL APPLIANCES LTD.
NO. 3 EAST XINGPU ROAD, HUANGPU TOWN, ZHONGSHAN
GUANGDONG PROVINCE 528429 PR CHINA
TEL: 86 (0) 760-23306389/23305877
FAX: 86 (0) 760-23306979
EXECUTIVE SUMMARY
Date of Registration : February 2, 2005
REGISTRATION NO. : 442000400004130
LEGAL FORM : Chinese-foreign equity joint venture
enterprise
CHIEF EXECUTIVE : Liang qingde (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 600,000,000
staff : 4,149
BUSINESS CATEGORY :
manufacturing & trading
Revenue : CNY 2,642,700,000 (AS OF DEC. 31, 2012)
EQUITIES : CNY 954,319,000 (AS OF DEC. 31,
2012)
WEBSITE :
N/A
E-MAIL : N/A
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND :
STEADY
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
Not yet be determined
LEGAL STATUS & HISTORY
SC was
established as a Chinese-foreign equity joint venture enterprise
of PRC with State Administration of Industry & Commerce (SAIC) under
registration No.: 442000400004130
on February
2, 2005.
SC’s Organization Code Certificate
No.: 77098632-0
%20ELECTRICAL%20APPLIANCES%20LTD%20-%20236820%2025-Sep-2013_files/image012.jpg)
SC’s Tax No.: 442000770986320
SC’s Customs Registration No.:
4420932808
SC’s registered capital: CNY 600,000,000
SC’s paid-in capital: CNY 600,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2007-08-10 |
Registered No. |
003889 |
442000400004130 |
|
2007-11-22 |
Registered Capital |
CNY 400,000,000 |
CNY 600,000,000 |
|
Shareholder (s) (% of
Shareholding) |
Glanz (Zhongshan) Electric Equipment Co.,
Ltd. 67.5% 45% Winsparkle International Corporation Ltd.
(Bahamas) 26.06% 13.04% Plan Develop Limited (Bahamas) 11.96% 23.94% Foshan Shunde District Glanz Electric
Appliances Industry Co., Ltd. 6.75% 4.5% Guangdong Glanz Group Co., Ltd. 0.75% 0.5% |
Galanz (Zhongshan) Electrical Equipment Co., Ltd. 45% Winsparkle International Corporation Ltd. (Bahamas) 26.06% Plan Develop Limited (Bahamas) 23.94% Foshan Shunde District Glanz Electric Appliances Industry Co., Ltd.
4.5% Guangdong Galanz Group Co., Ltd. 0.5% |
|
|
2010-1-27 |
Shareholder (s) (% of Shareholding) |
Galanz (Zhongshan) Electrical Equipment Co., Ltd. 45% Winsparkle International Corporation Ltd. (Bahamas) 26.06% Plan Develop Limited (Bahamas) 23.94% Foshan Shunde District Glanz Electric Appliances Industry Co., Ltd.
4.5% Guangdong Galanz Group Co., Ltd. 0.5% |
Goldpearl International Investments Limited (Hong Kong)） 50% Galanz (Zhongshan) Electrical Equipment Co., Ltd. 45% Guangdong Galanz Group Co., Ltd. 5% |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of
Shareholding |
|
Goldpearl International Investments Limited (Hong Kong) |
50 |
|
Galanz (Zhongshan) Electrical Equipment
Co., Ltd. |
45 |
|
Guangdong Galanz Group Co., Ltd. |
5 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Liang Qingde |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Goldpearl International Investments Limited (Hong Kong) 50
Galanz (Zhongshan) Electrical Equipment Co.,
Ltd. 45
Guangdong Galanz Group Co., Ltd.
5
%20ELECTRICAL%20APPLIANCES%20LTD%20-%20236820%2025-Sep-2013_files/image011.gif){kind=small}
Goldpearl
International Investments Limited (Hong Kong)
----------------------------------------------------------------------------
Registration No.: 1024823
Date of Registration: February 17, 2006
Legal Form: Private
Galanz (Zhongshan)
Electrical Equipment Co., Ltd.
-------------------------------------------------------------------
Date of Registration: November 25, 2005
Registration No.: 442000400024297
Registered Capital: CNY 10,000,000
Address: No.3, East Xingpu Avenue, Huangpu
Town, Zhongshan City, Guangdong province, China.
Postal Code: 528429
Tel: 86-760-23306389
Fax: 86-760-23309628
Guangdong Galanz
Group Co., Ltd.
------------------------------------------------
Date of Registration: April 3, 2003
Registration No.: 440681400014337
Registered Capital: CNY 88,216,200
Guangdong Glanz Group Co., Ltd. is a global,
professional home appliance manufacturer.
Since Galanz found in 1978, it has been
developing healthily, continuously, and rapidly for 27 year. Orienting as
Global Famous-Brand Home Appliance Manufacturing Center, more than 20,000
Galanz people commit themselves to develop three manufacturing bases: Global
Microwave Oven Manufacturing Center, Global Air-con Manufacturing Center and
Global Small Home Appliance Center, keep being the global No.1 of microwave
oven and light-wave oven manufacture, and become one of the top-ranking brands
in the world. Her products are hot sales in about 200 countries and regions,
the annual sale volume reaches 13 billions CNY and the profit of foreign
exchange is 700 million USD.
Website: www.galanz.com.cn
E-mail: info@galanz.com.cn
Address (Shunde): No.25, South Ronggui
Avenue, Shunde District, Foshan City, Guangdong Province, China
Tel: 86-757-28886389
Fax: 86-757-28889628
MANAGEMENT
Liang Qingde, Legal
Representative, Chairman and General Manager
-------------------------------------------------------------------------------------------------------
Ø
%20ELECTRICAL%20APPLIANCES%20LTD%20-%20236820%2025-Sep-2013_files/image013.jpg)
Gender: M
Ø
Age: 77
Ø
ID# 440623360429591
Ø Qualification:
University
Ø Working experience
(s):
From
2005 to present, working in SC as legal representative, chairman and general
manager
Also working in Galanz (Zhongshan) Electrical Equipment Co., Ltd. and Guangdong Galanz Group Co., Ltd. as legal representative
BUSINESS OPERATION
SC’s registered
business scope includes manufacturing and selling household appliance,
commercial air-conditioning, hardware electrical accessories, plastic parts and
providing after-sales service for its owned products.
SC is mainly
engaged in manufacturing and selling household appliance.
Brand: galanz
SC’s
products mainly include: household appliance, suck as microwave ovens, air
conditioner, induction cookers, washing machine, electric kettles, rice
cookers, refrigerator, wine cooler, and oven.
%20ELECTRICAL%20APPLIANCES%20LTD%20-%20236820%2025-Sep-2013_files/image014.jpg)
SC sources its materials 95% from domestic
market, and 5% from overseas market, mainly Hong Kong. SC sells 26% of its products
in domestic market, and 74% to overseas market, mainly U.S.A., Europe and
Southeast Asian 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 and Credit of 30-60 days.
*Major Customers:
==============
York International
Guangdong Galanz Electronic
Sales Co., Ltd.
Electrolux Kelvinator Limited
Daewoo International
Gome Electric Appliances Co., Ltd.
*Major Suppliers:
==============
galanz (Zhongshan) Electric Motor Manufacturing Co., Ltd.
Shunde galanz
Electronic Component
Manufacturing Co., Ltd.
(Hong Kong) General Bonus Limited
Staff & Office:
--------------------------
SC is
known to have approx. 4,149
staff at present.
SC owns an area as
its operating office & factory of approx. 1,700,000 sq. meters at the
heading address.
RELATED COMPANY
SC is known to have 3
subsidiaries at present,
n
Guangdong Galanz Electrical Appliances Sales Co., Ltd.
n
Zhongshan Galanz Household Electrical Appliances Co., Ltd.
n
Zhongshan Galanz Industrial & Trade Co., Ltd.
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 Zhongshan Huangpu Sub-branch
AC#:
829552498908091001
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
70,900 |
112,875 |
|
|
Notes receivable |
6,350 |
100 |
|
Accounts
receivable |
1,006,974 |
662,760 |
|
Advances to
suppliers |
7,590 |
3,071 |
|
Other receivable |
282,834 |
47,949 |
|
Inventory |
390,965 |
314,441 |
|
Deferred
expenses |
0 |
0 |
|
Other current
assets |
23,447 |
20,031 |
|
|
------------------ |
------------------ |
|
Current assets |
1,789,060 |
1,161,227 |
|
Long-term
investment |
156,000 |
156,000 |
|
Fixed assets |
423,623 |
374,000 |
|
Construction in
progress |
358,453 |
370,289 |
|
Intangible
assets |
180,558 |
176,424 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
2,907,694 |
2,237,940 |
|
|
============= |
============= |
|
Short-term loans |
216,300 |
4,400 |
|
Notes payable |
0 |
80,178 |
|
Accounts payable |
1,633,577 |
1,027,044 |
|
Wages payable |
9,635 |
14,097 |
|
Dividends
payable |
-13,351 |
-13,351 |
|
Taxes payable |
-49,495 |
-28,573 |
|
Advances from
clients |
116,049 |
101,762 |
|
Other payable |
10,894 |
0 |
|
Other current
liabilities |
13,084 |
9,564 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
1,936,693 |
1,195,121 |
|
Non-current
liabilities |
90,000 |
88,500 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
2,026,693 |
1,283,621 |
|
Equities |
881,001 |
954,319 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
2,907,694 |
2,237,940 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
Revenue |
4,757,331 |
2,642,700 |
|
Cost of sales |
4,358,864 |
2,332,618 |
|
Taxes and surcharges |
5,927 |
5,713 |
|
Sales expense |
55,214 |
39,274 |
|
Management expense |
230,741 |
181,281 |
|
Finance expense |
69,857 |
27,853 |
|
Non-operating
income |
15,212 |
2,345 |
|
Non-operating expense |
2,089 |
7,540 |
|
Profit before
tax |
49,851 |
83,249 |
|
Less: profit tax |
9,721 |
13,396 |
|
40,130 |
69,853 |
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
0.92 |
0.97 |
|
*Quick ratio |
0.72 |
0.71 |
|
*Liabilities
to assets |
0.70 |
0.57 |
|
*Net profit
margin (%) |
0.84 |
2.64 |
|
*Return on
total assets (%) |
1.38 |
3.12 |
|
*Inventory /
Revenue ×365 |
30 days |
44 days |
|
*Accounts
receivable / Revenue ×365 |
78 days |
92 days |
|
*Revenue /
Total assets |
1.64 |
1.18 |
|
*Cost of sales
/ Revenue |
0.92 |
0.88 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l The revenue of SC
appears fairly good in its line, and it decreased in 2012.
l SC’s net profit
margin is average.
l SC’s return on
total assets is average.
l
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in a fair
level in both years.
l
SC’s quick ratio is maintained in a normal level in
both years.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears large in both
years.
l
SC’s short-term loans appear small in 2012.
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 in both years.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Good.
CONCLUSIONS
SC is considered large-sized in its line with
fairly good financial conditions. Taking into consideration of SC’s general
performance, reputation as well as market conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.66 |
|
|
1 |
Rs.100.46 |
|
Euro |
1 |
Rs.84.60 |
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.