MIRA INFORM REPORT
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Report Date : |
03.12.2014 |
IDENTIFICATION DETAILS
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Name : |
hunan sun electric
power insulator and apparatus
manufacture CO., LTD. |
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Registered Office : |
Dalin Village, Dongbao Town, Liling City, Hunan Province, 412211 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
05.06.2001 |
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Com. Reg. No.: |
430281000006653 |
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Legal Form : |
Limited Liabilities Co. |
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Line of Business : |
Manufacturing and Selling of Electric Power Insulator and Apparatus. |
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No. of Employees : |
260 |
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 : |
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 – June 1, 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 |
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, 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.
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Source
: CIA |
Company
Name and address
hunan sun electric power insulator and apparatus
manufacture CO., LTD.
DALIN VILLAGE,
DONGBAO TOWN, LILING CITY,
HUNAN province,
412211 PR CHINA
TEL: 86 (0)
731-23590888/23591688 FAX: 86 (0)
731-23591088
EXECUTIVE
SUMMARY
INCORPORATION DATE : JUNE 5, 2001
REGISTRATION NO. : 430281000006653
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
STAFF STRENGTH : 260
REGISTERED CAPITAL : CNY 5,950,000
BUSINESS LINE :
MANUFACTURING & TRADING
TURNOVER : CNY 22,080,000 (AS OF DEC. 31, 2013)
EQUITIES : CNY 10,830,000
(AS OF DEC. 31, 2013)
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.1480= 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 June 5, 2001.
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 exporting self-made products and
technology; importing raw and auxiliary materials, instruments, machinery and equipment,
spare parts and technology used for self-production; processing with imported
materials, processing with imported samples, assembling with imported parts,
and compensation trade in agreement; importing raw and auxiliary materials,
machinery and equipment, instruments and spare parts used for self-production
and research; sales of electrical equipment, instruments as an agent; power
technology consulting services.
SC is mainly engaged in manufacturing and selling electric power
insulator and apparatus.
Mr. Yang
Tao is the
legal representative and chairman of SC at present.
SC is known to have approx. 260 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 Liling. Our checks reveal that SC rents the
total premise about 48,000 square meters.
http://www.sunelectric.biz/ The design is
professional and the content is well organized. At present it in Chinese and
English versions.
E-mail: sunelectric@sunelectric.biz
ISO9001:2000 Certificate:
No significant changes were found during our
checks with the local Administration for Industry and Commerce.
Organization code: 70726101X
For the past two years there is no record of
litigation.
MAIN SHAREHOLDERS:
Name % of Shareholding
Yang Dasheng 44.54
Yang Tao
26.89
Yang Feng
28.57
l Legal
representative and Chairman:
Mr. Yang Tao, born in 1977, he is currently responsible for the overall management
of SC.
Working Experience(s):
At present Working in SC as legal
representative and chairman
l General manager:
Mr. Yang Feng, ID# 43028119820823****, born in 1982, he is currently responsible for
the daily management of SC.
Working Experience(s):
At present Working in SC as general
manager
SC is mainly engaged in manufacturing and selling electric power
insulator and apparatus.
SC’s products mainly include: fuse cut and
fuse cut insulator, arrester and arrester bushing, ANSI power line insulator,
DIN transformer bushing, wall bushing, fuse cut bushing and hexagon bushing,
and all kinds of post inside and station post, etc.
SC sources its materials 100% from domestic market. SC sells 50% of its
products to overseas market, mainly Europe, America, Southeast Asia, and 50% in
domestic market.
The buying terms of SC include Check, T/T
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’s management declined to release its major
suppliers and clients.
Trademark & Patents
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Registration No. |
10437685 |
1926025 |
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Registration Date |
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Trademark Design |
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SC is not known to have any
subsidiary at present.
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 management declined to release its bank
details.
Balance Sheet
Unit: CNY’000
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As of Dec. 31, 2013 |
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Cash & bank |
1,210 |
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Inventory |
5,300 |
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Accounts receivable |
5,730 |
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Other receivables |
140 |
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Other current assets |
390 |
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Current assets |
12,770 |
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Fixed assets net value |
9,160 |
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Long term investment |
0 |
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Projects under construction |
1,450 |
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Intangible and other assets |
2,660 |
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Total assets |
26,040 |
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=========== |
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Short loan |
4,000 |
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Accounts payable |
5,140 |
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Advances from clients |
0 |
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Other Accounts payable |
4,750 |
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Other current liabilities |
1,320 |
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Current liabilities |
15,210 |
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Long term liabilities |
0 |
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Total liabilities |
15,210 |
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Equities |
10,830 |
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------------------ |
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Total liabilities & equities |
26,040 |
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=========== |
Income Statement
Unit: CNY’000
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As of Dec. 31, 2013 |
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Turnover |
22,080 |
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Cost of
goods sold |
17,760 |
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Sales expense |
1,330 |
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Management expense |
2,060 |
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Finance expense |
580 |
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Profit
before tax |
220 |
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Less:
profit tax |
80 |
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Profits |
140 |
Important Ratios
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As of Dec.
31, 2013 |
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*Current
ratio |
0.84 |
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*Quick
ratio |
0.49 |
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*Liabilities
to assets |
0.58 |
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*Net profit
margin (%) |
0.63 |
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*Return on
total assets (%) |
0.54 |
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*Inventory
/Turnover ×365 |
88 days |
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*Accounts
receivable/Turnover ×365 |
95 days |
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*Turnover/Total
assets |
0.85 |
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* Cost of
goods sold/Turnover |
0.80 |
PROFITABILITY:
AVERAGE
l The turnover of SC
appears average.
l SC’s net profit
margin is average.
l SC’s return on
total assets is average.
l SC’s cost of goods
sold is average, comparing with its turnover.
LIQUIDITY:
FAIR
l The current ratio
of SC is maintained in a fair level.
l SC’s quick ratio
is maintained in a fair level.
l The inventory of
SC appears fairly large.
l The accounts
receivable of SC appears fairly large.
l The short-term
loan of SC appears average.
l SC’s turnover is in
a fair 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 average.
Overall
financial condition of the SC: Fairly stable.
SC is considered medium-sized in its line
with fairly stable financial conditions. The large amount of inventory and
accounts receivable could be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.93 |
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|
1 |
Rs.97.39 |
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Euro |
1 |
Rs.77.21 |
INFORMATION DETAILS
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Analysis Done by
: |
SUB |
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Report Prepared
by : |
NIT |
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 |
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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 |
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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 |
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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 |
-- |
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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.