MIRA
INFORM REPORT
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Report Date : |
14.08.2014 |
IDENTIFICATION DETAILS
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Name : |
ANHUI YINGFA ELECTRONICS CO., LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
06.06.2003 |
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Com. Reg. No.: |
341181000014224 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in processing, manufacturing and selling electronic
appliances and originals; selling hardware appliances, rubber & plastic
products, building materials and decoration materials; importing and
exporting self-made commodities and technologies. |
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No of Employees : |
300 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 but correct |
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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 – June 01, 2014
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Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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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 Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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, growth of the
private sector, development of stock markets and a modern banking system, 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 considered important to "economic
security," explicitly looking to foster globally competitive industries.
After keeping its currency tightly linked to the US dollar for years, in July
2005 China 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 and
expanded the daily trading band within which the RMB is permitted to fluctuate.
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. Several factors are
converging to slow China's growth, including debt overhang from its
credit-fueled stimulus program, industrial overcapacity, inefficient allocation
of capital by state-owned banks, and the slow recovery of China's trading
partners. The government's 12th Five-Year Plan, adopted in March 2011 and reiterated
at the Communist Party's "Third Plenum" meeting in November 2013,
emphasizes continued economic reforms and the need to increase domestic
consumption in order to make the economy less dependent in the future on fixed
investments, exports, and heavy industry. 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 & address
ANHUI YINGFA
ELECTRONICS CO., LTD.
TIANYANG ROAD, QINLAN TOWN, TIANCHANG,
ANHUI PROVINCE, 239341 PR CHINA
TEL: 86 (0) 550-7815919
FAX: 86 (0) 550-7815989
EXECUTIVE SUMMARY
INCORPORATION DATE : JUN. 6, 2003
REGISTRATION NO. : 341181000014224
REGISTERED LEGAL FORM : LIMITED
LIABILITIES CO.
CHIEF EXECUTIVE :
MS. LUO BAOYING (legal representative)
STAFF STRENGTH :
300
REGISTERED CAPITAL : CNY
10,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 33,580,000 (AS OF DEC. 31, 2013)
EQUITIES :
CNY 6,890,000 (AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION :
FAIR
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.1541 = 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
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 Jun. 6, 2003.
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 licensed business items: general
cargo (it is valid until Feb. 23, 2015). General operating items: processing,
manufacturing and selling electronic appliances and originals; selling hardware
appliances, rubber & plastic products, building materials and decoration
materials; importing and exporting self-made commodities and technologies
(excluding commodities and technologies prohibited by the state).
SC is mainly engaged in manufacturing and selling electronic components.
Ms. Luo Baoying is legal representative, general manager and executive
director of SC at present.
SC is known to have approx. 300 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in the industrial zone of Tianchang.
Our checks reveal that SC owns the total premise, but SC’s accountant refused
to release the gross area.
http://www.yingfa.com/ The website belongs to Yingfa Group. It
includes the information about SC and other related companies. The design is
professional and the content is well organized. At present the web site is in
Chinese and English versions.
See below for SC as executive party (defendant).
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Executed Party |
Anhui Yingfa Electronics Co., Ltd. |
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Court |
Tianchang City People's Court天长市人民法院 |
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Date of Case |
June 6, 2012 |
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Case Number |
(2012) 00442 |
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Claim Amount |
RMB 229,553.02 |
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Case Status |
Completed |
Remark: Due to the lack of information, we are unable to provide the
cause of action, judgment or other information.
Changes of its
registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
Unknown |
Registered no. |
3411812309160 |
Present one |
Subject passed the annual inspection of 2012 with Administration for
Industry & Commerce.
Organization Code: 750961417
MAIN SHAREHOLDERS:
Name % of
Shareholding
Luo Baoying 54
Zhang Min 6
Zhang Fayu 40
Legal
representative, General Manager and Executive Director:
Ms. Luo Baoying, ID# 34232119630304xxxx, born in 1963 with university
education. She is currently responsible for the overall and daily management of
SC.
Working Experience(s):
At present Working
in SC as legal representative, general manager and executive director.
Supervisor:
Zhang Min
SC is mainly engaged in manufacturing and selling electronic components.
SC’s products mainly include: color FBT transformer, LCD, POP adapter
SC sources its materials 100% from domestic market. SC sells 30% of its
products in domestic market and 70% to overseas market.
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.
Note: SC declined to release its major suppliers and clients.
According to the website:
Shanghai Pudong Yingfa Electronic Co., Ltd.
=================================
Incorporation Date: May 21, 1998
Registration No.: 310115000463789
Registered Legal Form: Limited Liabilities Company
Legal representative: Mr. Zhang Fayu
Shanghai Shengchang Tianhua Electronics Co., Ltd.
=================================
Incorporation Date:
Registration No.: 310000400034365
Registered Legal Form: Limited Liabilities Company
Legal representative: Mr. Zhang Fayu
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.
SC’s accountant refused to release the bank details.
Balance
Sheet
Unit: CNY’000
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As
of Dec. 31, 2013 |
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Cash & bank |
5,150 |
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Inventory |
11,690 |
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Accounts receivable |
26,120 |
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Subsidy receivable |
470 |
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Advances to suppliers |
790 |
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Other receivables |
23,460 |
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Note receivables |
30 |
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------------------ |
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Current assets |
67,710 |
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Fixed assets net value |
12,750 |
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Long term investment |
35,000 |
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Intangible and other assets |
70 |
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------------------ |
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Total assets |
115,530 |
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=========== |
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Short loan |
46,000 |
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Accounts payable |
6,590 |
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Taxes payable |
-20 |
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Other accounts payable |
52,420 |
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Note payable |
3,650 |
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------------------ |
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Current liabilities |
108,640 |
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Long term liabilities |
0 |
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Total liabilities |
108,640 |
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Equities |
6,890 |
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Total liabilities & equities |
115,530 |
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=========== |
Income
Statement
Unit: CNY’000
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As
of Dec. 31, 2013 |
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Turnover |
33,580 |
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Cost of goods sold |
33,910 |
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Taxes and additional of
main operation |
140 |
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Sales expense |
960 |
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Management expense |
3,450 |
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Finance expense |
3,330 |
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Investment income |
1,260 |
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Profit from other operations |
-150 |
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Non-operating income |
80 |
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Non-operating expense |
40 |
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Profit before tax |
-7,060 |
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Less: profit tax |
0 |
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Profits |
-7,060 |
Important
Ratios
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As of Dec. 31, 2013 |
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*Current ratio |
0.62 |
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*Quick ratio |
0.52 |
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*Liabilities to assets |
0.94 |
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*Net profit margin (%) |
-21.02 |
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*Return on total assets (%) |
-6.11 |
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*Inventory /Turnover ×365 |
128 days |
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*Accounts receivable/Turnover ×365 |
284 days |
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*Turnover/Total assets |
0.29 |
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* Cost of goods sold/Turnover |
1.01 |
PROFITABILITY:
FAIR
The turnover of SC appears average in its line.
SC’s net profit margin is poor.
SC’s return on total assets is fair.
SC’s cost of goods sold is high.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a fair level.
SC’s quick ratio is maintained in a fair level.
The inventory of SC appears fairly large.
The accounts receivable of SC is large.
SC’s short loans are large in 2013.
SC’s turnover is in a poor level, comparing with the size of its total
assets.
LEVERAGE: FAIR
The debt ratio of SC is high.
The risk for SC to go bankrupt is average.
Overall financial condition of the SC: Fair.
SC is considered medium-sized in its line with fair financial
conditions. The large amount of inventory, accounts receivable and short loans
could be a threat to SC’s financial situation.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.18 |
|
|
1 |
Rs.102.55 |
|
Euro |
1 |
Rs.81.77 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
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.