MIRA INFORM REPORT

 

 

Report Date :

30.06.2014

 

IDENTIFICATION DETAILS

 

Name :

JILIN SINO-MICROELECTRONICS CO., LTD.

 

 

Registered Office :

NO. 99 Shenzhen Street, High-Tech Zone, Jilin City, Jilin, 132013 PR

 

 

Country :

China

 

 

Financials (as on) :

30.09.2013

 

 

Date of Incorporation :

21.10.1999

 

 

Com. Reg. No.:

220200000001250

 

 

Legal Form :

Shares Limited Company

 

 

Line of Business :

Subject is engaged in designing, developing, manufacturing and selling discrete semiconductor device, integrated circuit, electrical/electronic product, automobile electronic product, process automation instrumentation, electrical component and internet application; exporting own products and related technologies, importing raw & auxiliary materials, machinery equipment, instrument, meter, spare parts and related technologies needed by own producing and R&D, processing with imported materials, processing with imported samples, assembling with imported parts, and compensation trade in agreement; manufacturing and selling hydrogen, oxygen, nitrogen and compressed air.

 

 

No of Employees :

3,173 (Including Subsidiaries)

 


 

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

 

Status :

Satisfactory

 

 

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 – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

China

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

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, 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

 

JILIN SINO-MICROELECTRONICS CO., LTD.

NO. 99 SHENZHEN STREET, HIGH-TECH ZONE, JILIN CITY, JILIN, 132013 PR CHINA

TEL: 86 (0) 432-64684562/64675688        FAX: 86 (0) 432-64665812/64671533

 

 

EXECUTIVE SUMMARY

 

INCORPORATION DATE            : OCT. 21, 1999

REGISTRATION NO.                  : 220200000001250

REGISTERED LEGAL FORM     : SHARES LIMITED COMPANY

CHIEF EXECUTIVE                   : MR. XIA ZENGWEN (CHAIRMAN)

STAFF STRENGTH                    : 3,173 (INCLUDING SUBSIDIARIES)

REGISTERED CAPITAL             : CNY 738,080,000

BUSINESS LINE                        : DESIGNING, DEVELOPING, MANUFACTURING AND TRADING

TURNOVER                              : CNY 907,638,000 (CONSOLIDATED, JAN. 1 TO SEP. 30, 2013)

EQUITIES                                 : CNY 1,946,866,000 (CONSOLIDATED, AS OF SEP. 30, 2013)

PAYMENT                                : AVERAGE

MARKET CONDITION                : COMPETITIVE

FINANCIAL CONDITION             : STABLE

OPERATIONAL TREND             : STEADY

GENERAL REPUTATION           : WELL-KNOWN

EXCHANGE RATE                    : CNY 6.0497= 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

 

 

HISTORY

 

Note: the correct tel. and fax numbers are the heading one instead of the given one.

 

SC was registered as a shares limited company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Oct. 21, 1999.

 

 

Company Status:  Shares limited co.

This form of business in PR China is defined as a legal person. Its registered capital is divided into shares of equal par value and the co. raises capital by issuing share certificates by promotion or by public offer. Shareholders bear limited liability to the extent of shareholding, and the co. is liable for its debts only to the extent of its total assets. The co has independent property of legal person and enjoys property rights of legal person. The characteristics of the shares limited co. are as follows:

The establishment of the co. requires at least two promoters and no more than 200, half of whom shall be domiciled in China. Natural person are allowed to serve as promoters.

The minimum registered capital of a co. is CNY 5M. while that of the co. with foreign investment is CNY 5M. The total capital of a co. which propose to apply for publicly listed must be no less than CNY 30M.

The board of directors must consist of five to nineteen directors.

If the co. raises capital by public offer, the promoters must not subscribe less than 35% of the total shares. the promoters’ shares are restricted to transfer- within one year of the offer.

A state-owned enterprise that is restructured into a shares limited co. must comply with the conditions & requirements specified under the law & administrative rule.         

 

SC’s registered business scope includes designing, developing, manufacturing and selling discrete semiconductor device, integrated circuit, electrical/electronic product, automobile electronic product, process automation instrumentation, electrical component and internet application; exporting own products and related technologies, importing raw & auxiliary materials, machinery equipment, instrument, meter, spare parts and related technologies needed by own producing and R&D, processing with imported materials, processing with imported samples, assembling with imported parts, and compensation trade in agreement; manufacturing and selling hydrogen, oxygen, nitrogen and compressed air.

 

SC is mainly engaged in designing, developing, manufacturing and selling semiconductor components.

 

Mr. Xia Zengwen is legal representative and chairman of SC at present.

 

SC is known to have approx. 3,173 employees (including employees of subsidiaries), including 1,887 production staff, 100 sales staff, 954 technical staff, 41 financial staff and 191 administration staff.

 

 

SC is currently operating at the above stated address, and this address houses its operating office and factory in the high-tech zone of Jilin. Detailed premise information is unspecified.

 

 

WEB SITE

 

http://www.hwdz.com.cn The design is professional and the content is well organized. At present it is both in Chinese and English versions.

 

E-Mail: IR@hwdz.com.cn

 

 

KEY EVENTS/RECENT DEVELOPMENT

 

 

SC is a listed company in Shanghai Stock Exchange Market with the code of 600360.

 

Subject passed the annual inspection of 2012 with Administration for Industry & Commerce.

 

Organization Code: 717149339

 

Changes of its registered information:

 

Date of change

Item

Before the change

After the change

Unknown

Company’s name

Jilin Huaxing Technology Co., Ltd.

Present one

 

 

LITIGATION

 

For the past two years there is no record of litigation.

 

 

OWNERSHIP/MANAGEMENT

 

MAIN SHAREHOLDERS: (As of Sep. 30, 2013)

 
Name                                                                                                    % of Shareholding

 

Shanghai Pengsheng Science & Technology Industry Co., Ltd.                          23.51

Harfor Fund Corporation-Minsheng-Founder East Asia Trust Co., Ltd.                  8.13

Jilin Small & Medium Size Enterprises Credit Guarantee Group Co., Ltd.

(literal translation)                                                                                               2.43

Xu Guoying                                                                                                        0.27

Xiao Guiqing                                                                                                      0.25

Li Li                                                                                                                   0.24

Wang Wenbo                                                                                                     0.21

Cheng Xiuyun                                                                                                                 0.18

Hu Ming                                                                                                             0.16

Qiu Guofu                                                                                                          0.16

Other Shareholders                                                                                            64.46

 

Shanghai Pengsheng Science & Technology Industry Co., Ltd.

=================================

Incorporation Date         : Nov. 14, 1995

Reg. No.                       : 310115000309455

Legal representative      : Wang Yufeng

Registered capital         : CNY 111,150,000

 

Web: www.shpstech.com

Add.: 17F, Liangyou Mansion, No. 618 Shangcheng Road, Pudong New Area, Shanghai 618

Tel.: 021-51196800

Fax: 021-51196801

 

MANAGEMENT

 

l  Legal Representative and Chairman:

 

Mr. Xia Zengwen, born in 1952, with master’s degree, senior economist. He is currently responsible for the overall management of SC.

 

Working Experience(s):

 

At present                                Working in SC as chairman and legal representative;

 

l  Vice Chairman:

 

Mr. Wang Yufeng, born in 1968, with bachelor’s degree, engineer and economist. He is currently responsible for the daily management of SC.

 

Working Experience(s):

 

From 2006 until now                             Working in SC as vice chairman

Also working in Shanghai Pengsheng Science & Technology Industry Co., Ltd. as legal representative, chairman and general manager

 

l  General Manager:

 

Mr. Zhao Dongjun, born in 1968, with bachelor’s degree. He is currently responsible for the daily management of SC.

 

Working Experience(s):

 

From 2008 until now                             Working in SC as general manager

Also working in Jilin Magic Semiconductor Co., Ltd. as legal representative and chairman

 

l  Directors:

 

Song Tianxiang

Liang Zhiyong

Jiang Yongheng

 

l  Supervisors:

 

Chen Cheng

Yu Tong

Song Yuning

 

 

BUSINESS OPERATIONS

 

SC is mainly engaged in designing, developing, manufacturing and selling semiconductor components.

 

SC’s business mainly includes 3-inch, 4-inch, 5-inch and 6-inch semiconductor devices.

SC sources its materials 80% from domestic market and 20% from the 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.

 

Major Clients

===========

Yidong HK Trading Limited

Shenzhen Powin Science & Technology Co., Ltd.

Shanghai Seefull Electronic Co., Ltd.

NTL

Zhejiang NVC Lamps Co., Ltd.

 

Note: SC’s management refused to release its major suppliers.

 

 

RELATED COMPANIES

 

Jilin Magic Semiconductor Co., Ltd.

Guangzhou Sino Microelectronics Company Limited

Jilin Huasheng Electronic Co., Ltd.

Jilin Enzhipu Semiconductor Co., Ltd. (literal translation)

Shanghai Wenxian Microelectronics Co., Ltd. (literal translation)

 

 

PAYMENT

 

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.

 

 

 

BANKING

 

SC’s management refused to release its banking information.

 

 

FINANCIAL HIGHLIGHTS

 

Consolidated Balance Sheet

 

Unit: CNY’000

 

as of Sep. 30, 2013

as of Dec. 31, 2012

Cash & bank

1,010,542

699,348

Notes receivable

197,990

162,824

Accounts receivable

333,125

250,007

Other receivables

35,517

29,950

Advances to suppliers

66,450

52,681

Inventory

253,451

261,775

Other current assets

0

0

 

------------------

------------------

Current assets

1,897,075

1,456,585

Investment property

27,609

28,921

Fixed assets net value

1,160,537

1,195,250

Projects under construction

220,514

184,773

Long term investment

52,349

52,349

Intangible assets

169,910

178,856

Long-term deferred expenses

6,592

7,778

Other assets

0

0

Deferred assets

9,896

10,263

 

------------------

------------------

Total assets

3,544,482

3,114,775

 

=============

=============

Short loans

374,450

300,730

Notes payable

211,005

193,997

Accounts payable

364,780

297,707

Advances from clients

1,188

1,061

Payroll payable

2,231

0

Taxes payable

9,702

3,429

Interests payable

610

739

Dividends payable

0

0

Other payable

45,198

50,334

Other current liabilities

0

0

 

------------------

------------------

Current liabilities

1,009,164

847,997

Long term liabilities

588,452

594,748

 

------------------

------------------

Total liabilities

1,597,616

1,442,745

Equities

1,946,866

1,672,030

 

------------------

------------------

Total liabilities & equities

3,544,482

3,114,775

 

=============

=============

 

 

Consolidated Income Statement

 

Unit: CNY’000

 

Jan. 1 to Sep. 30, 2013

as of Dec. 31, 2012

Turnover

907,638

1,055,067

Cost of goods sold

696,027

815,978

Taxes and additional of main operation

6,260

6,860

     Sales expense

32,864

29,597

     Management expense

103,149

132,846

     Finance expense

34,170

51,507

Investment income

4,443

4,585

Asset impairment loss

106

4,285

Non-operating income

8,628

22,999

Non-operating expense

152

357

Profit before tax

1,793,437

2,124,081

Less: profit tax

10,894

6,924

Profits

37,087

34,297

 

Important Ratios

=============

 

as of Sep. 30, 2013

as of Dec. 31, 2012

*Current ratio

1.88

1.72

*Quick ratio

1.63

1.41

*Liabilities to assets

0.45

0.46

*Net profit margin (%)

4.09

3.25

*Return on total assets (%)

1.05

1.10

*Inventory /Turnover ×365

/

91 days

*Accounts receivable/Turnover ×365

/

86 days

*Turnover/Total assets

0.26

0.34

* Cost of goods sold/Turnover

0.77

0.77

 

 

FINANCIAL COMMENTS

 

PROFITABILITY: AVERAGE

 

l  The turnover of SC appears good in its line.

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: AVERAGE

 

l  The current ratio of SC is maintained in a normal level.

l  SC’s quick ratio is maintained in a normal level.

l  The inventory of SC appears average.

l  The accounts receivable of SC appears average.

l  SC’s short-term loan is average.

l  SC’s turnover is in a poor level, comparing with the size of its total assets.

 

 

LEVERAGE: FAIRLY GOOD

 

l  The debt ratio of SC is low.

l  The risk for SC to go bankrupt is low.

 

Overall financial condition of the SC: Stable

 

 

REMARKS

 

SC is considered large-sized in its line with stable financial conditions. Taking into consideration of SC’s general performance and operation size, a credit line up to would appear to be within SC’s capacities

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.10

UK Pound

1

Rs.102.40

Euro

1

Rs.81.88

 

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.