MIRA
INFORM REPORT
|
Report Date : |
13.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
GUANGZHOU KINTE INDUSTRIAL CO., LTD. |
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Registered Office : |
No. 16 Yufeng Road, Shiling
Town, Huadu District, Guangzhou, Guangdong Province 510860 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
14.03.1996 |
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Com. Reg. No.: |
440101000071177 |
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Legal Form : |
One-Person Limited Liabilities Company |
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|
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Line of Business : |
Manufacturing
and selling machinery & electrical equipment, chemical products. |
|
|
|
|
No. of Employees |
550 |
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, 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
GUANGZHOU KINTE INDUSTRIAL CO.,
LTD.
NO. 16
YUFENG ROAD, SHILING TOWN, HUADU DISTRICT, GUANGZHOU
GUANGDONG
PROVINCE 510860 PR CHINA
TEL: 86
(0) 20-86985854/86985818/86985608
FAX: 86
(0) 20-86853828/86985823
EXECUTIVE SUMMARY
Date of Registration : march 14, 1996
REGISTRATION NO. : 440101000071177
LEGAL FORM : one-person Limited liabilities company
REGISTERED CAPITAL :
cny 40,800,000
staff : 550
BUSINESS CATEGORY :
r & d & manufacturing & trading
Revenue : CNY 970,757,000 (AS OF DEC. 31, 2012)
EQUITIES : CNY 219,279,000 (AS OF DEC. 31, 2012)
PAYMENT : AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION :
average
EXCHANGE RATE : CNY 6.25 = 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 one-person limited liabilities company of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.: 440101000071177.
SC’s Organization Code Certificate
No.: 23124074-9
SC’s Tax No.: 440106231240749
SC’s registered capital: cny 40,800,000
SC’s paid-in capital: cny 40,800,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2001-06 |
Legal Representative |
Xie Yongshang |
Ma Jian |
|
2004-11 |
Registered Capital |
CNY 35,558,100 |
CNY 50,800,000 |
|
-- |
Registration No. |
4401011103963 |
440101000071177 |
|
|
Registered Capital |
cny 50,800,000 |
cny 40,800,000 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
China National Electric
Apparatus Research Institute Co., Ltd. |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and
Chairman |
Ma Jian |
|
General Manager |
Qin Hanjun |
|
Supervisor |
Qian Zhenqi |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
China National Electric Apparatus Research Institute
Co., Ltd. 100
---------------------------------------
China National Electric Apparatus Research
Institute Co., Ltd., affiliated to China National Machinery Industry
Corporation, engaged in technological R & D, national test and
technological production, now has over 2,000 staff, with 70% of professional
technical people. After developing for half a century, current CEI is a
state-level innovative enterprise. The three operation bases of CEI occupy over
400,000 square meters in area and 280,000 square meters in construction area.
The headquarters of CEI is located in
Xingang West Road of Guangzhou City, with an area of over 40,000 square meter, having 9 state-level technical R & D platforms
such as State Key Laboratory, State Innovative Enterprise and International
Co-operation Base, 11 provincial and municipal level technological R & D
platforms such as the provincial and municipal public laboratories and key
laboratories, 17 international standards interface platforms, 11 national
standard platforms and 16 industrial platforms, and the R & D team leaded
by doctors, masters and experts in different academic fields and industries.
CEI co-operates internationally in sciences and technologies with more than 30
countries such as U.S.A., Germany and Japan. Its researches cover 6 areas and
over 30 specialties such as environmental science, material science, evaluation
science, energy source science, engineering science and intelligent science,
and obtain over 4,100 scientific and technical achievements.
Its former name was China National Electric
Apparatus Research Institute中国电器科学研究院.
Registration No.: 440108000000021
Legal Representative: Ma Jian 马坚
Registered Capital: CNY 211,700,000
Website: www.kintepower.com
Tel.: 86 (0) 20-86985818/86985826/86985827
Fax: 86 (0) 20-86985823
MANAGEMENT
Ma
Jian , Legal
Representative and Chairman
--------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 59
Ø
Working
experience (s):
At present, working in SC as legal representative and
chairman
Also
working in China National Electric Apparatus Research Institute Co., Ltd. as
legal representative
Qin
Hanjun, General Manager
---------------------------------------------------
Ø
Gender: M
Ø
Working
experience (s):
At present, working in SC as general manager
Qian Zhenqi, Supervisor
-------------------------------------------
Ø
Gender: M
BUSINESS OPERATION
SC’s registered business scope includes electronic,
communication & automatic control technology research and development;
selling general machinery equipment, electrical machinery and equipment;
mechanical engineering design services; wholesaling environmental protection
equipment; manufacturing refrigeration & air conditioning equipment;
materials science research and technology development; network technology
research and development; computer technology development and technology
services; new material technology development services; manufacturing
electrical instrument, general & special instruments & components;
electronic automation engineering installation services; manufacturing other
metal processing machinery; manufacturing electrical machinery equipment; and
wholesaling chemical products.
SC is mainly
engaged in researching, developing, manufacturing and selling machinery &
electrical equipment, chemical products.
SC’s products
mainly include: K（Z）、H（E）series large power rectifying device, DLB
series power filter compensation device, Special power supply and intelligent
control system, etc.
Plastic coating
-----------------
White appliances with paint,
Black appliances with paint,
Digital electronic products with paint,
Vehicle plastic parts with paint
Etc.
Metal coatings
------------------
The electromechanical product with paint
Construction machinery with paint
Agricultural and forestry machinery paint
Automobiles and auto parts with paint
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.
*Major
Client*
------------------
Intl
Battery Inc.
Staff & Office:
--------------------------
SC is
known to have approx. 550 staff
at present.
SC owns an area as
its operating office and factory, but the detailed information is unknown.
RELATED COMPANY
Guangzhou Kinte Industrial Co., Ltd. Paint Chemical Materials Branch
------------------------------------------
Registration No.: 440121000036979
Date of Registration:
Principal: Li Daxu
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 Guangzhou City Guangzhou Avenue
Sub-branch
AC#: 3602072239200240345
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
Cash |
47,529 |
67,610 |
|
Notes receivable |
41,025 |
65,801 |
|
Accounts
receivable |
226,488 |
93,762 |
|
Advances to suppliers |
59,885 |
59,033 |
|
Other receivable |
18,442 |
133,289 |
|
Inventory |
246,183 |
228,080 |
|
Prepaid
expenses |
0 |
0 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
639,552 |
647,575 |
|
Long-term
investment |
0 |
5,278 |
|
Fixed assets |
204,983 |
163,992 |
|
Construction in
progress |
1,145 |
6,250 |
|
Intangible
assets |
14,827 |
12,293 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred income
tax assets |
285 |
190 |
|
Other non-current
assets |
10,651 |
6,478 |
|
|
------------------ |
------------------ |
|
Total assets |
871,443 |
842,056 |
|
|
============= |
============= |
|
Short-term loans |
0 |
30,000 |
|
Notes payable |
19,350 |
40,840 |
|
Accounts payable |
140,887 |
127,125 |
|
Wages payable |
11,500 |
3,658 |
|
Welfares payable |
9,986 |
0 |
|
Taxes payable |
9,351 |
2,395 |
|
Advances from
clients |
218,356 |
195,930 |
|
Other payable |
53,996 |
0 |
|
Accrued expenses |
0 |
0 |
|
Other current
liabilities |
0 |
91,336 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
483,426 |
491,284 |
|
Non-current
liabilities |
122,974 |
131,493 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
606,400 |
622,777 |
|
Equities |
265,043 |
219,279 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
871,443 |
842,056 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
Revenue |
937,071 |
970,757 |
|
Cost of sales |
717,927 |
750,295 |
|
Taxes and surcharges |
6,259 |
3,575 |
|
Sales expense |
50,874 |
62,114 |
|
Management expense |
110,876 |
110,067 |
|
Finance expense |
6,519 |
7,132 |
|
Non-operating
income |
4,208 |
3,111 |
|
Non-operating expense |
56 |
315 |
|
Profit before
tax |
45,950 |
31,933 |
|
Less: profit tax |
5,925 |
4,585 |
|
Profits |
40,025 |
27,348 |
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
1.32 |
1.32 |
|
*Quick ratio |
0.81 |
0.85 |
|
*Liabilities
to assets |
0.70 |
0.74 |
|
*Net profit
margin (%) |
4.27 |
2.82 |
|
*Return on
total assets (%) |
4.59 |
3.25 |
|
*Inventory /
Revenue ×365 |
96 days |
86 days |
|
*Accounts
receivable / Revenue ×365 |
89 days |
36 days |
|
*Revenue /
Total assets |
1.08 |
1.15 |
|
*Cost of sales
/ Revenue |
0.77 |
0.77 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l
The revenue of SC appears
fairly 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 sales is average, comparing with its revenue.
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 large in both years.
l
The accounts receivable of SC appears average in
2012.
l
The short-term loans of SC appear average in 2012.
l
SC’s revenue is in an
average 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 Good.
CONCLUSIONS
SC is considered medium-sized in its line with fairly good
financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.72 |
|
|
1 |
Rs.100.81 |
|
Euro |
1 |
Rs.82.22 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
PDT |
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.