MIRA
INFORM REPORT
|
Report Date : |
15.02.2014 |
IDENTIFICATION DETAILS
|
Name : |
BSW HOUSEHOLD APPLIANCES CO., LTD. |
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|
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Registered Office : |
No. 66
Wangzhuang Road, Wuxi, Jiangsu Province 214028 PR |
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Country : |
China |
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|
Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
14.12.1994 |
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Com. Reg. No.: |
320200400005987 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Subject is engaged in the manufacturing washing machines, clothes
driers, driers, dishwashers and assembly kitchen ware appliances, disinfection
cabinets, smoke exhausters and components; selling self-made products and
providing after-sales service. |
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|
|
|
No. of Employees : |
384 |
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 |
|
Maximum Credit Limit : |
USD 5,000,000 |
|
Status : |
Good |
|
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 – September 30, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
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 & address
BSW HOUSEHOLD APPLIANCES CO., LTD.
NO. 66
WANGZHUANG ROAD, WUXI, JIANGSU PROVINCE 214028 PR CHINA
TEL: 86 (0)
510- 85218888*600
FAX: 86 (0)
510- 85227423
EXECUTIVE SUMMARY
Date of Registration : DECember 14, 1994
REGISTRATION NO. : 320200400005987
LEGAL FORM : WHOLLY
FOREIGN-OWNED ENTERPRISE
CHIEF EXECUTIVE :
RITZ DAEGAL (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : USD 29,275,000
staff :
384
BUSINESS CATEGORY : MANUFACTURING & trading
Revenue :
CNY 1,098,180,000 (AS OF DEC. 31, 2013)
EQUITIES :
CNY 446,255,000 (AS OF DEC. 31, 2013)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT :
AVERAGE
Recommended Credit Limit : UP TO USD 5,000,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.06 = 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 wholly foreign-owned enterprise of PRC with
State Administration of Industry & Commerce (SAIC) under registration No.: 320200400005987.
SC’s Organization Code Certificate No.:
60791794-X
SC’s Tax No.: 32020060791794X
SC’s registered capital: USD 29,275,000
SC’s paid-in capital: USD 29,275,000 (CNY 243,544,367.86)
Registration Change Record:+
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Legal Representative |
Winfried Eduard Seitz |
Ritz Daegal |
|
Legal Form |
Chinese-Foreign Equity Joint Venture Enterprise |
Wholly Foreign-Owned Enterprise |
|
|
Shareholder (s) (% of Shareholding) |
(Germany) Bosch und Siemens Hausgeräte GmbH 60% Wuxi Little Swan Company Limited 40% |
BSH Home Appliances Investment (China) Co., Ltd. 40% Bosch and Siemens Home Appliances Group 60% |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
BSH Home Appliances Investment (China) Co., Ltd. |
40 |
|
Bosch and Siemens Home Appliances Group |
60 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Ritz Daegal |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
BSH Home Appliances Investment (China) Co., Ltd. 40
Bosch and Siemens Home Appliances Group 60
BSH Home Appliances Investment (China) Co., Ltd.
----------------------------------------------
Date of Registration: October
28, 2010
Registration No.: 320000400004369
Legal Form: Chinese-Foreign Equity Joint
Venture Enterprise
Chief Executive: Ritz
Daegal (Legal Representative)
Registered Capital: Usd
29,275,000
MANAGEMENT
Ritz Daegal, Legal Representative and Chairman
------------------------------------------------------------------------
Gender: M
Passport No.: 928909806
Qualification: University
Working experience
(s):
At present, working in SC as legal representative and chairman
BUSINESS
OPERATION
SC’s registered business scope includes manufacturing washing machines,
clothes driers, driers, dishwashers and assembly kitchen ware appliances,
disinfection cabinets, smoke exhausters and components; selling self-made
products and providing after-sales service.
SC is mainly engaged in manufacturing and selling household appliances.
SC’s products mainly include: washing machine, clothes drier,
dinnerware, smoke exhauster
SC sources its materials 30% from domestic market, and 70% from the overseas market, mainly Italy, France, Germany and Spain. SC sells 70% of its products in domestic market and 30% to the overseas market, mainly Germany and Hong Kong.
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.
Staff &
Office:
--------------------------
SC is known to have approx. 384
staff at present.
SC owns an area as its operating office & factory of approx. 24,600
sq. meters at the heading address.
RELATED
COMPANY
SC is not known to have any subsidiary 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
The bank information of SC is not filed in SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
24,214 |
8,420 |
|
|
Notes receivable |
0 |
0 |
|
Accounts receivable |
296,464 |
122,851 |
|
Advances to suppliers |
4,286 |
6,224 |
|
Other receivable |
176,260 |
457,247 |
|
Inventory |
21,426 |
28,114 |
|
Deferred expenses |
442 |
403 |
|
Other current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
523,092 |
623,259 |
|
Fixed assets |
100,081 |
81,890 |
|
Construction in progress |
6,244 |
8,682 |
|
Intangible assets |
4,875 |
4,713 |
|
Long-term prepaid expenses |
0 |
0 |
|
Deferred income tax assets |
19,526 |
21,442 |
|
Other non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
653,818 |
739,986 |
|
|
============= |
============= |
|
Short-term loans |
0 |
0 |
|
Notes payable |
0 |
0 |
|
Accounts payable |
243,401 |
228,678 |
|
Wages payable |
9,685 |
12,183 |
|
Welfare payable |
2,423 |
2,350 |
|
Taxes payable |
15,834 |
16,441 |
|
Advances from clients |
0 |
0 |
|
Other payable |
9,896 |
10,471 |
|
Accrued expenses |
8,611 |
8,343 |
|
Other current liabilities |
15,671 |
13,835 |
|
|
------------------ |
------------------ |
|
Current liabilities |
305,521 |
292,301 |
|
Non-current liabilities |
936 |
1,430 |
|
|
------------------ |
------------------ |
|
Total liabilities |
306,457 |
293,731 |
|
Equities |
347,361 |
446,255 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
653,818 |
739,986 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
Revenue |
987,289 |
1,098,180 |
|
Cost of sales |
819,350 |
883,334 |
|
Taxes and surcharges |
4,625 |
5,160 |
|
Sales expense |
14,383 |
13,430 |
|
Management expense |
64,450 |
72,059 |
|
Finance expense |
-2,636 |
-3,056 |
|
Non-business income |
222 |
457 |
|
Non-business expenditure |
6,553 |
5,465 |
|
Profit before tax |
88,137 |
131,976 |
|
Less: profit tax |
20,709 |
33,082 |
|
67,428 |
98,894 |
Important Ratios
|
|
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
*Current ratio |
1.71 |
2.13 |
|
*Quick ratio |
1.64 |
2.04 |
|
*Liabilities to assets |
0.47 |
0.40 |
|
*Net profit margin (%) |
6.83 |
9.01 |
|
*Return on total assets (%) |
10.31 |
13.36 |
|
*Inventory / Revenue ×365 |
8 days |
10 days |
|
*Accounts receivable/ Revenue ×365 |
110 days |
40 days |
|
*Revenue/Total assets |
1.51 |
1.48 |
|
*Cost of sales / Revenue |
0.83 |
0.80 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIRLY GOOD
·
The revenue of SC appears fairly good in its line.
·
SC’s net profit margin is fairly good in both
years.
·
SC’s return on total assets is fairly good in both
years.
·
SC’s cost of sales is average, comparing with its
revenue.
LIQUIDITY: FAIRLY
GOOD
·
The current ratio of SC is maintained in a fairly
good level.
·
SC’s quick ratio is maintained in a fairly good
level.
·
The inventory of SC is maintained in an average
level.
·
The accounts receivable of SC is maintained in an
average level in 2013.
·
SC has no short-term loans in both years.
·
SC’s revenue is in an average level, comparing with
the size of its total assets.
LEVERAGE: AVERAGE
·
The debt ratio of SC is low.
·
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly Good.
CONCLUSIONS
SC is considered medium-sized in its line with fairly good financial
conditions. Taking into consideration of SC’s good background, general
performance, reputation as well as market conditions, a credit line up to USD 5,000,000 would appear to be within
SC’s capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.28 |
|
|
1 |
Rs.103.67 |
|
Euro |
1 |
Rs.85.18 |
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.