MIRA INFORM REPORT
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Report Date : |
01.04.2014 |
IDENTIFICATION DETAILS
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Name : |
CHINA ELECTRONICS ZHEJIANG COMPANY |
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Registered Office : |
No. 408 Wensan Road, Xihu District, Hangzhou Zhejiang Province 310012 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
11.03.1986 |
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Com. Reg. No.: |
330000000056912 |
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Legal Form : |
State-Owned Enterprise |
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Line of Business : |
Subject is engaged in the importing and exporting farming tools,
instruments, light industrial products, ferrous metals, non-ferrous metals, chemical
products, rubber products, medical devices, machinery and equipment, special
machinery and equipment, ceramic products, exporting black-and-white
television, specialty crafts, importing non-metallic mineral products and
textile fibers |
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No. of Employees : |
100 |
RATING & COMMENTS
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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 : |
Satisfactory |
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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 – September 30, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
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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 2013 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
consumption; (b) facilitating higher-wage job opportunities for the aspiring
middle class, including rural migrants and increasing numbers of college
graduates; (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. Debt overhang from its
credit-fueled stimulus program in 2008-10, particularly among local
governments, and soaring property prices challenge policy makers currently.
Their efforts to cool a red-hot property market in 2011 appear to have curbed
inflation, but contributed to slower GDP growth in 2012 and 2013. Slow recovery
in Europe and other key export markets have also retarded growth. 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 fixed investments and exports in the future. However,
China has made only marginal progress toward these rebalancing goals. The new
government of President XI Jinping has signaled a greater willingness to
undertake reforms that focus on China's long-term economic health, including
giving the market a more decisive role in allocating resources.
|
Source
: CIA |
Company
name and address
CHINA ELECTRONICS ZHEJIANG
COMPANY
NO. 408 WENSAN ROAD, XIHU DISTRICT, HANGZHOU
ZHEJIANG PROVINCE 310012 PR CHINA
TEL: 86 (0) 571-88915666/88938759/88938748
FAX: 86 (0) 571-88864333/88864818
EXECUTIVE
SUMMARY
Date of Registration : march 11, 1986
REGISTRATION NO. : 330000000056912
LEGAL FORM : State-owned enterprise
CHIEF EXECUTIVE :
tang wei (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : cny 13,767,571
staff :
100
BUSINESS CATEGORY : trading
Revenue :
cny 694,560,000 (AS OF DEC. 31,
2012)
EQUITIES :
cny 69,210,000 (AS OF DEC. 31, 2012)
WEBSITE : www.cezjc.com
E-MAIL :
cezjc@cezjc.com
PAYMENT :
AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.21 = 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 state-owned enterprise of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.: 330000000056912 on March 11, 1986.
SC’s Organization Code Certificate No.:
14291043-X
SC’s registered capital: cny 13,767,571
SC’s paid-in capital: cny 13,767,571
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 |
|
China National Electronics Import & Export Corp. |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and General Manager |
Tang Wei |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
China National Electronics Import & Export Corp. 100
-----------------------------
China National Electronics Import & Export Corp. (CEIEC) was founded
in April, 1980. With honesty and diligence, and 30 years operation, CEIEC has
built wide-ranged cooperation relationships with more than 160 countries and regions,
and has made great contribution to the reforms and Opening-up of China and to
the development of Chinese electronics industry.
CEIEC is honorably entitled to a number of A-grade certificates in the
business of world trade, international engineering, tendering, exhibition and
advertisement. By the end of 2011, CEIEC’s total assets and sales revenue has
respectively reached CNY 21.2 billion and CNY 25.1 billion.
Date of Registration: April 15, 1980
Registration No.: 100000000001068
Legal Form: State-Owned
Enterprise
Chief Executive: Chen Xu
Registered Capital: CNY 644,210,000
Address: Electronics Building, A23 Fuxing Road, Beijing, 100036, China
Tel: 86-10-68219550
Fax: 86-10-68223916
E-mail: ceiec@ceiec.com.cn
Web: www.ceiec.com.cn
MANAGEMENT
Tang Wei, Legal
Representative and General Manager
-------------------------------------------------------------------------------
Gender: M
Qualification: University
Working experience
(s):
At present, working in SC as legal representative and general manager
BUSINESS OPERATION
SC’s registered business scope includes parking services (<temporary
motor vehicle parking business license>, validity period as of Mar. 28,
2018). According to the import and export directory approved by the Ministry of
Foreign Trade and Economic Cooperation, importing and exporting farming tools,
instruments, light industrial products, ferrous metals, non-ferrous metals,
chemical products, rubber products, medical devices, machinery and equipment,
special machinery and equipment, ceramic products, exporting black-and-white
television, specialty crafts, importing non-metallic mineral products and
textile fibers, import and export agent of the above goods, importing and exporting goods and
technologies excluding the unified national joint ventures in 16 export
commodities and national implementation of the 14 kinds of imported goods;
processing with the imported materials and compensation trade agreement, barter
trade and transit trade; domestic sales of countries of the former Soviet
Union, Eastern Europe barter business, external to internal goods and imported
goods.
SC is mainly engaged in international trade.
SC’s products mainly include: consumer electronic goods, electronic
components and accessories, lighting/lamp, instruments and apparatus and
household electric appliance
SC sources its products 100% from domestic market. SC sells 40% of its
products in domestic market, and 60% to overseas market, mainly Eastern Europe,
North America, and Mid East.
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 Customers:
==============
Metra Electronics Corp.
Goldwood Sound Inc.
Staff &
Office:
--------------------------
SC is known to have approx. 100
staff at present.
SC owns an area as its operating office of approx. 800 sq. meters at the
heading address.
RELATED COMPANY
SC is not known to have any subsidiaries 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 Zhejiang Branch
AC#: 800100024508091001
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
Cash |
11,884 |
33,809 |
31,060 |
|
Notes receivable |
0 |
0 |
0 |
|
Accounts receivable |
19,146 |
15,879 |
16,010 |
|
Advances to suppliers |
4,480 |
4,934 |
17,060 |
|
Other receivable |
14,097 |
2,739 |
6,730 |
|
Inventory |
20,913 |
34,881 |
8,370 |
|
Deferred expenses |
0 |
0 |
0 |
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Other current assets |
0 |
0 |
0 |
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|
------------------ |
------------------ |
------------------ |
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Current assets |
70,520 |
92,242 |
79,230 |
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Financial assets available for sale |
105,336 |
83,560 |
92,930 |
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Investment real estate |
3,782 |
3,415 |
0 |
|
Fixed assets |
8,589 |
9,716 |
11,320 |
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Construction in progress |
0 |
0 |
0 |
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Intangible assets |
810 |
791 |
820 |
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Long-term prepaid expenses |
0 |
0 |
0 |
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Deferred income tax assets |
8,576 |
8,476 |
8,470 |
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Other non-current assets |
0 |
0 |
0 |
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------------------ |
------------------ |
------------------ |
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Total assets |
197,613 |
198,200 |
192,770 |
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============= |
============= |
============= |
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Short-term loans |
30,000 |
40,000 |
40,000 |
|
Notes payable |
0 |
0 |
0 |
|
Accounts payable |
43,629 |
25,304 |
19,470 |
|
Wages payable |
173 |
37 |
0 |
|
Taxes payable |
-15,998 |
-14,104 |
-15,770 |
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Advances from clients |
38,371 |
65,231 |
55,880 |
|
Other payable |
1,766 |
2,020 |
2,030 |
|
Other current liabilities |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
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Current liabilities |
97,941 |
118,488 |
101,610 |
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Non-current liabilities |
24,899 |
19,533 |
21,950 |
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|
------------------ |
------------------ |
------------------ |
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Total liabilities |
122,840 |
138,021 |
123,560 |
|
Equities |
74,773 |
60,179 |
69,210 |
|
|
------------------ |
------------------ |
------------------ |
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Total liabilities & equities |
197,613 |
198,200 |
192,770 |
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============= |
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
Revenue |
567,569 |
668,662 |
694,560 |
|
Cost of sales |
541,582 |
643,788 |
675,520 |
|
Sales expense |
11,095 |
12,364 |
12,010 |
|
Management expense |
14,126 |
15,265 |
16,710 |
|
Finance expense |
1,097 |
396 |
790 |
|
Investment income |
3,775 |
6,330 |
5,910 |
|
Profit before tax |
2,068 |
2,269 |
2,510 |
|
Less: profit tax |
248 |
273 |
170 |
|
Profits |
1,820 |
1,996 |
2,340 |
Important Ratios
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
0.72 |
0.78 |
0.78 |
|
*Quick ratio |
0.51 |
0.48 |
0.70 |
|
*Liabilities to assets |
0.62 |
0.70 |
0.64 |
|
*Net profit margin (%) |
0.32 |
0.30 |
0.34 |
|
*Return on total assets (%) |
0.92 |
1.01 |
1.21 |
|
*Inventory / Revenue ×365 |
14 days |
20 days |
5 days |
|
*Accounts receivable / Revenue ×365 |
13 days |
9 days |
9 days |
|
*Revenue / Total assets |
2.87 |
3.37 |
3.60 |
|
*Cost of sales / Revenue |
0.95 |
0.96 |
0.97 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
·
The revenue of SC appears fairly good, and it was
rising year by year.
·
SC’s net profit margin is average.
·
SC’s return on total assets is average.
·
SC’s cost of sales is fairly high, comparing with its
revenue.
LIQUIDITY: FAIR
·
The current ratio of SC is maintained in a fair
level in three years.
·
SC’s quick ratio is maintained in a fair level in
three years.
·
The inventory of SC appears average.
·
The accounts receivable of SC is maintained in an
average level.
·
SC’s short-term loans appear fairly large.
·
SC’s revenue is in an average level, comparing with
the size of its total assets.
LEVERAGE: FAIR
·
The debt ratio of SC is average in three years.
·
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable financial conditions.
The fairly large amount of short-term loans may be a threat to SC’s financial
condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.10 |
|
|
1 |
Rs.99.85 |
|
Euro |
1 |
Rs.82.58 |
INFORMATION DETAILS
|
Report Prepared
by : |
NNA |
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.