MIRA
INFORM REPORT
|
Report Date : |
27.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
YUEQING SANDI ELECTRIC CO.,
LTD. |
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|
|
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Registered Office : |
5/F, No.
95, Hexie Road, Shangyou Village, Liushi Town, Yueqing, Zhejiang Province,
325604 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
26.08.2008 |
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Com. Reg. No.: |
330382000053398 |
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Legal Form : |
Limited Liabilities Co. |
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Line of Business : |
Engaged in selling power supply products. |
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No. of Employees |
4 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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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 – 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
YUEQING SANDI ELECTRIC CO., LTD.
5/F,
NO. 95, HEXIE ROAD, SHANGYOU VILLAGE, LIUSHI TOWN, YUEQING,
ZHEJIANG
PROVINCE, 325604 PR CHINA
TEL: 86
(0) 577-62793760/27879316 FAX: 86 (0) 577-61209955/27873806
EXECUTIVE SUMMARY
INCORPORATION DATE : AUG. 26, 2008
REGISTRATION NO. :
330382000053398
REGISTERED LEGAL FORM : LIMITED
LIABILITIES CO.
STAFF STRENGTH :
4
REGISTERED CAPITAL : CNY 800,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 2,770,000 (AS OF DEC. 31,
2012)
EQUITIES :
CNY 320,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION :
FAIR
OPERATIONAL TREND :
FAIR
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.12= 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 Aug. 26, 2008.
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 manufacturing,
processing and selling power distribution switch control equipment, inverter
and high & low voltage complete sets of cabinet; selling hardware,
machinery equipment, instruments, wire & cable, auto parts, motorcycle
spare parts, low voltage electrical appliances and electrical accessories;
importing and exporting commodities and technologies.。)
SC is mainly engaged in selling power supply
products.
Yi
Haixia is the legal representative, chairman and general manager of SC at
present.
SC is
known to have approx. 4 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office in Yueqing. The detailed
premise information is unknown.
http://www.lgis.cc/ The design is professional and the content is
well organized. At present the web site is in Chinese, English and other
versions.
Email: tisandi@sandi.cc
No significant events or changes were found during our
checks with the local Administration for Industry and Commerce.
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name % of Shareholding
Yi Haixia 49
Zhou Jun 51
l
Legal Representative, Chairman and General Manager:
Yi Haixia is currently responsible for the
overall management of SC.
Working Experience(s):
At
present Working in SC as legal representative,
chairman and general manager.
Also working in Yueqing Bangzhao Electric Co., Ltd. as legal
representative.
l
Supervisor:
Zhou Jun
SC is mainly
engaged in selling power supply products.
SC’s products mainly include: The main products are:
PV Grid-Connected Inverter, Solar Inverter, PV Solar Pumping Inverter, Water
Pumping Inverter, Grid Tie Inverter, On Grid Inverter, Solar pumping inverter,
Wind Turbine Controller, Solar Charge Controller, Pure Sine Wave Inverter,
Off-Grid Inverter, power Inverter.
The products of company are applied in fire fighting,
construction, industry, new energy source, civilian use, finance, business tax,
electric power, medical treatment, aviation, automatically control system of
war industry and national heavy engineering project.
SC sources its materials 60% from domestic market and 40%
from overseas market. SC sells 70% of it 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 T/T, L/C, Check and Credit of
30-60 days.
Note:
SC declined to release its major suppliers and clients.
Yueqing Bangzhao Electric Co., Ltd.
Registered
no.: 330382000259378
Legal
representative: Yi Haixia
Establishment
date:
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.
The banking
information of SC is unknown.
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
Cash & bank |
640 |
150 |
|
Accounts
receivable |
690 |
160 |
|
Advances to
suppliers |
0 |
10 |
|
Other
receivables |
80 |
0 |
|
Inventory |
10 |
80 |
|
Export drawback
receivable |
70 |
130 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
1,490 |
530 |
|
Fixed assets net
value |
200 |
210 |
|
Long term
investment |
0 |
0 |
|
Projects under
construction |
0 |
0 |
|
Intangible and other
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
1,690 |
740 |
|
|
=========== |
=========== |
|
Short loan |
0 |
0 |
|
Accounts payable |
310 |
350 |
|
Advances from
clients |
1,020 |
80 |
|
Taxes payable |
0 |
-20 |
|
Other Accounts
payable |
10 |
10 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
1,340 |
420 |
|
Long term
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
1,340 |
420 |
|
Equities |
350 |
320 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
1,690 |
740 |
|
|
=========== |
=========== |
Income Statement
Unit: CNY’000
|
|
As
of Dec. 31, 2012 |
|
Turnover |
2,770 |
|
Cost of goods sold |
2,270 |
|
Sales expense |
260 |
|
Management expense |
270 |
|
Finance expense |
0 |
|
Profit before tax |
-30 |
|
Less: profit tax |
0 |
|
Profits |
-30 |
Important
Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
1.11 |
1.26 |
|
*Quick ratio |
1.10 |
1.07 |
|
*Liabilities
to assets |
0.79 |
0.57 |
|
*Net profit
margin (%) |
/ |
-1.08 |
|
*Return on
total assets (%) |
/ |
-4.05 |
|
*Inventory
/Turnover ×365 |
/ |
11 days |
|
*Accounts
receivable/Turnover ×365 |
/ |
22 days |
|
*Turnover/Total
assets |
/ |
3.74 |
|
* Cost of
goods sold/Turnover |
/ |
0.82 |
PROFITABILITY:
FAIR
l
The turnover of SC appears average in 2012.
l
SC’s net profit margin is fair in 2012.
l
SC’s return on total assets is fair in 2012.
l
SC’s cost of goods sold is average, comparing with
its turnover in 2012.
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 fairly large
in 2011 and average in 2012.
l
SC has no short-term loan in both years.
l
SC’s turnover is in a fairly good level, comparing
with the size of its total assets in 2012.
LEVERAGE: AVERAGE
l
The debt ratio of SC is fairly high in 2011 and
average in 2012.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fair.
SC is considered small-sized in its line with fair financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.58.58 |
|
|
1 |
Rs.98.66 |
|
Euro |
1 |
Rs.79.81 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
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.