MIRA
INFORM REPORT
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Report Date : |
19.12.2014 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
K-Touch Plaza, No. 55, Jiachuang Second Road, Opto-Mechatronics Industrial Park, Zhongguancun
Science Park, Tongzhou
District, Beijing 100111 PR |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
07.07.2004 |
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Com. Reg. No.: |
110000410206223 |
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Legal Form : |
Wholly Foreign-Owned |
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Line of Business : |
Engaged in
manufacturing and selling communication products. |
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No. of Employees : |
1,200 |
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 – September 30, 2014
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
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
|
Source
: CIA |
Company name and address
BEIJING BENY WAVE TECHNOLOGY CO.,
LTD.
K-TOUCH
PLAZA, NO. 55, JIACHUANG SECOND ROAD
OPTO-MECHATRONICS
INDUSTRIAL PARK, ZHONGGUANCUN SCIENCE PARK
TONGZHOU
DISTRICT, BEIJING 100111 PR CHINA
TEL: 86
(0) 10-58929221/58929213
FAX: 86
(0) 10-58954533
EXECUTIVE SUMMARY
Date of Registration : july 7, 2004
REGISTRATION NO. : 110000410206223
LEGAL FORM : Wholly
foreign-owned enterprise
REGISTERED CAPITAL :
CNY 680,000,000
staff : 1,200
BUSINESS CATEGORY :
MANUFACTURING & trading
Revenue :
CNY 6,186,240,000 (AS OF DEC. 31,
2013)
EQUITIES : CNY -177,580,000 (AS OF DEC. 31, 2013)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT : AVERAGE
Recommended Credit Limit: small amount
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : POOR
OPERATIONAL TREND :
FAIR
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.15 = 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 on July 7, 2004.
However, SC changed to present legal form, and was registered as wholly
foreign-owned enterprise of PRC with State Administration of Industry &
Commerce (SAIC) under registration No.: 110000410206223 in December 2010.
SC’s Organization Code Certificate No.:
76420174-2
SC’s Tax No.: 110112764201742
SC’s Customs Registration No.:
1114940318
SC’s registered capital: CNY 680,000,000
SC’s paid-in capital: CNY 680,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2010-12 |
Shareholder (s) (% of
Shareholding) |
Vital Profit Technology Inc. (B.V.I.) 79% Beijing Tianyu Communication Equipment Co., Ltd. 21% |
Vital Profit Technology Inc. (B.V.I.) 100% |
|
Legal Form |
Chinese-Foreign Equity Joint Venture |
Wholly Foreign-Owned |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Vital Profit Technology Inc. (B.V.I.) |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Ni Gang |
|
Director |
Lei Youhui |
|
Rong Xiuli |
|
|
Cheng Zhanglun |
|
|
Bai Jumin |
|
|
Supervisor |
Li Xia |
|
Wei Lu |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Vital Profit Technology Inc.
(B.V.I.) 100
MANAGEMENT
Ni Gang, Legal
Representative, Chairman and General Manager
-------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 42
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as legal representative, chairman
and general manager
Also working in Beijing Beny Yuxiang Technology Co., Ltd. as
legal representative
Director
-----------
Lei Youhui
Rong Xiuli
Cheng Zhanglun
Bai Jumin
Supervisor
--------------
Li Xia
Wei Lu
BUSINESS OPERATION
SC’s registered business scope includes manufacturing electronic
products; developing software; developing and repairing electronic products;
importing and exporting goods and technology; technical extension services;
wholesaling cosmetics, communication equipment, communication equipment and
accessories; selling self-made products.
SC is mainly
engaged in manufacturing and selling communication products.
SC’s
products mainly include: mobile phone, etc.
SC sources its materials 80% from domestic market, and 20% from overseas market. SC sells 70% of its 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 Check, T/T, L/C and Credit of 30-60
days.
Staff & Office:
--------------------------
SC is
known to have approx. 1,200
staff at present.
SC rents an area
as its operating office and factory, but the detailed information is unknown.
RELATED COMPANY
SC is known to have a subsidiary
at present,
Beijing
Beny Yuxiang Technology Co., Ltd.
------------------------------------
Date of Registration: September 14, 2012
Registration No.: 110112015245502
Legal Form: Wholly Foreign-Owned Enterprise
Registered Capital: CNY 10,000,000
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:
Industrial & Commercial Bank of China Beijing
Opto-Mechatronics Sub-branch
AC#:
0200097509000002318
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2013 |
|
57,120 |
|
|
Notes receivable |
40,000 |
|
Accounts
receivable |
586,250 |
|
Advances to
suppliers |
13,040 |
|
Other receivable |
294,510 |
|
Inventory |
571,020 |
|
Non-current
assets within one year |
0 |
|
Other current
assets |
705,430 |
|
|
------------------ |
|
Current assets |
2,267,370 |
|
Fixed assets |
12,800 |
|
Long-term
prepaid expenses |
0 |
|
Deferred income
tax assets |
0 |
|
Other
non-current assets |
15,700 |
|
|
------------------ |
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Total assets |
2,295,870 |
|
|
============= |
|
Short-term loans |
125,000 |
|
Notes payable |
382,400 |
|
Accounts payable |
1,456,600 |
|
Advances from
clients |
206,770 |
|
Other payable |
169,790 |
|
Other current
liabilities |
91,410 |
|
|
------------------ |
|
Current
liabilities |
2,431,970 |
|
Non-current
liabilities |
41,480 |
|
|
------------------ |
|
Total
liabilities |
2,473,450 |
|
Equities |
-177,580 |
|
|
------------------ |
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Total
liabilities & equities |
2,295,870 |
|
|
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2013 |
|
Revenue |
6,186,240 |
|
Cost of sales |
6,098,770 |
|
Sales expense |
284,760 |
|
Management expense |
274,390 |
|
Finance expense |
10,970 |
|
Profit before
tax |
-514,330 |
|
Less: profit tax |
0 |
|
-514,330 |
Important Ratios
=============
|
|
As
of Dec. 31, 2013 |
|
*Current ratio |
0.93 |
|
*Quick ratio |
0.70 |
|
*Liabilities
to assets |
1.08 |
|
*Net profit
margin (%) |
-8.31 |
|
*Return on
total assets (%) |
-22.40 |
|
*Inventory /
Revenue ×365 |
34 days |
|
*Accounts
receivable/ Revenue ×365 |
35 days |
|
*Revenue/Total
assets |
2.69 |
|
*Cost of sales
/ Revenue |
0.99 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIR
l
The revenue of SC appears
fairly good in its line.
l
SC’s net profit margin is fair.
l
SC’s return on total assets is poor.
l
SC’s cost of sales is high, comparing with its revenue.
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 is maintained in an average
level.
l
The accounts receivable of SC is maintained in an
average level.
l
SC’s short-term loans are in an average level.
l
SC’s revenue is in an
average level, comparing with the size of its total assets.
LEVERAGE:
POOR
l
The debt ratio of SC is high.
l
The risk for SC to go bankrupt is above average.
Overall financial
condition of the SC: Poor.
CONCLUSIONS
SC is considered large-sized in its line with
poor financial conditions. Taking into consideration of SC’s general
performance, reputation as well as market conditions, credit dealings with SC
should be confined into small amount at present.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.32 |
|
|
1 |
Rs.98.68 |
|
Euro |
1 |
Rs.78.11 |
INFORMATION DETAILS
|
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 |
|
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.