MIRA INFORM REPORT
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Report No. : |
334630 |
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Report Date : |
05.08.2015 |
IDENTIFICATION DETAILS
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Name : |
ningbo hongri
electric appliance co., ltd. |
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Registered Office : |
No. 17, Hengpeng Road, Henghe Town, Cixi City, Zhejiang Province 315318
Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
12.02.2001 |
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Com. Reg. No.: |
330200400031849 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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Line of Business : |
Manufacturing Electric Glass, Food Processing Machine, Bread Oven,
Coffee Maker, Juicer, and Reducer. |
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No. of Employees : |
120 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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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 – March 31, 2015
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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China |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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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. In 2014 the People’s Bank of China (PBOC) doubled 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 2014 stood as the largest economy in the world, surpassing the US that year... 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 2014 more than 274 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. In 2014 China agreed to begin limiting carbon dioxide emissions by 2030. China implemented several economic reforms in 2014, including passing legislation to allow local governments to issue bonds, opening several state-owned enterprises to further private investment, loosening the one-child policy, passing harsher pollution fines, and cutting administrative red tape.
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Source
: CIA |
Company
name & address
ningbo hongri electric appliance co., ltd.
No. 17, Hengpeng Road, Henghe Town, Cixi CITY,
Zhejiang Province 315318 PR CHINA
TEL: 86 (0) 574-63267131 FAX: 86 (0) 574-63267711
EXECUTIVE
SUMMARY
INCORPORATION DATE :
FEBRUARY 12, 2001
REGISTRATION NO. :
330200400031849
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE
CHIEF EXECUTIVE :
MR. HU ZHENGYUAN (CHAIRMAN)
STAFF STRENGTH :
120
REGISTERED CAPITAL :
USD 250,000
BUSINESS LINE :
MANUFACTURING & TRADING
TURNOVER :
CNY 110,663,700 (AS OF DEC. 31, 2014)
EQUITIES :
CNY 47,072,440 (AS OF DEC. 31, 2014)
PAYMENT :
NO COMPLAINTS
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.2127 =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 Chinese-foreign equity joint venture enterprise
at local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on February 12, 2001.
Company Status: Chinese-foreign equity joint venture
enterprise This form of business in PR
China is defined as a legal person. It is a limited co. jointly invested by
one or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of
capital investment. The investing parties exercise business management,
share profits and bear all risks and liabilities of the co. together. The
equity joint venture law requires that foreign party contribute not less
than 25% of the registered capital, with no maximum. The investing parties
are free to agree on method of profit distribution and liabilities bearing
according to the proportion of capital investment. Each investing parties
contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has a
limited duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition
position in international market may extend beyond the 50 years limit.
SC’s registered business scope includes manufacturing electric glass,
food processing machine, bread oven, coffee maker, juicer, and reducer.
SC is mainly engaged in manufacturing and selling electric appliance.
Mr. Hu Zhengyuan is the legal representative, general manager and
chairman of SC at present.
SC is known to have approx. 120 employees at present.
The: No.-38 Longquan Road,Henghe Town Cixi,Zhejiang Province,China is
SC’s former operating address, SC is currently operating at the above stated
address, and this address houses its operating office and factory in the
industrial zone of Cixi. Our checks reveal that SC rents the total premise, but
the gross area is unspecified.
http://www.china-cxhf.com/ The website belongs to SC and Cixi Hongfa
Electrical Appliance Co., Ltd. The design is professional and the content is
well organized. At present the web site is both in Chinese and English
versions.
E-mail: junming1818@126.com
Changes of its
registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2007-05-18 |
Shareholders |
Lin Yikun (Taiwanese) 40% Cixi Hongfa Electrical Appliance Co., 60% |
Lin Yikun (Taiwanese) 40% Hu Zhengyuan 60% |
|
2007-06-27 |
Shareholders |
Lin Yikun (Taiwanese) 40% Hu Zhengyuan胡正元60% |
Present ones |
|
2008-09-16 |
Registration no. |
005076 |
Present one |
Tax registration number: 330282726386352
Organization code: 726386352
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Hong Kong Jindier International Limited 40
Hu Zhengyuan 60
Hong Kong Jindier International Limited
==============================
CR No.: 1133889
Company Type: Private company limited by shares
Date of Incorporation: 18-May-2007
Active Status: Live
Chairman,
General Manager and Legal representative:
Mr. Hu Zhengyuan, born in 1942, with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
At present Working
in SC as chairman, general manager and legal representative
Also working in Cixi Hongfa Electrical Appliance Co., Ltd. as legal
representative.
Vice
Chairman:
Ms. Sun Jianfen, born in 1973. She is currently responsible for the
daily management of SC.
Working Experience(s):
At present Working
in SC as vice chairman.
Director:
Yang Meilan
Supervisor:
Hu Junming
SC is mainly engaged in manufacturing and selling electric appliance.
SC’s products mainly include: gear box, bearing case, clutch and
electric kettle.
SC sources its materials 90% from domestic market and 10% from overseas
market. SC sells 40% of its products in domestic market, and 60% 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 and Credit of 30-60 days.
Note: SC declined
to release its major suppliers and clients.
Trademark:
Registration No. 3400311
Registration Date July
7, 2004
Trademark Design 
Cixi Hongfa Electrical Appliance Co., Ltd.
===============================
Registered no.: 330282000009034
Legal representative: Hu Zhengyuan
Establishment date:
Website: http://www.china-cxhf.com/
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.
Agricultural Bank of China Cixi Henghe Sub-branch
AC#: 39508001040001708
Relationship: Normal
Balance
Sheet
Unit: CNY
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|
As of Dec. 31,
2013 |
As of Dec. 31,
2014 |
|
Cash & bank |
9,039,047 |
17,272,110 |
|
Inventory |
13,777,770 |
11,059,560 |
|
Accounts receivable |
43,270,000 |
37,602,170 |
|
Advances to suppliers |
/ |
/ |
|
Prepaid expenses |
/ |
/ |
|
Other receivables |
18,714,340 |
7,030,674 |
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|
------------------ |
------------------ |
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Current assets |
84,951,710 |
82,995,070 |
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Fixed assets net value |
4,593,700 |
3,677,466 |
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Long term investment |
0 |
0 |
|
Total intangible and other assets |
0 |
0 |
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Other assets |
0 |
/ |
|
|
------------------ |
------------------ |
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Total assets |
89,545,410 |
86,837,580 |
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=========== |
=========== |
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Short loan |
/ |
/ |
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Note payable |
/ |
/ |
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Accounts payable |
20,605,290 |
11,830,730 |
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Advances from customers |
/ |
/ |
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Other accounts payable |
-859,598 |
-871,413 |
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Salary payable |
/ |
/ |
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Welfare payable |
/ |
/ |
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Unpaid taxes |
/ |
/ |
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Unpaid profit |
/ |
/ |
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Other unpaid expenses |
/ |
/ |
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Accrued expenses |
/ |
/ |
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------------------ |
------------------ |
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Current liabilities |
48,385,680 |
39,765,140 |
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Long term liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total liabilities |
48,385,680 |
39,765,140 |
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Equities |
41,159,730 |
47,072,440 |
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|
------------------ |
------------------ |
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Total liabilities & equities |
89,545,410 |
86,837,580 |
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=========== |
=========== |
Income
Statement
Unit: CNY
|
|
As of Dec. 31,
2013 |
As of Dec. 31,
2014 |
|
Turnover |
103,321,800 |
110,663,700 |
|
Profit before tax |
8,868,281 |
8,270,043 |
|
Less: profit tax |
2,217,070 |
2,067,511 |
|
Profits |
6,651,211 |
6,202,532 |
Important
Ratios
=============
|
|
As of Dec. 31,
2013 |
As of Dec. 31,
2014 |
|
*Current ratio |
1.76 |
2.09 |
|
*Quick ratio |
1.47 |
1.81 |
|
*Liabilities to assets |
0.54 |
0.46 |
|
*Net profit margin (%) |
6.44% |
5.60% |
|
*Return on total assets (%) |
7.43% |
7.14% |
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*Inventory /Turnover ×365 |
49days |
37 days |
|
*Accounts receivable/Turnover ×365 |
153 days |
125days |
|
*Turnover/Total assets |
1.15 |
1.27 |
PROFITABILITY: FAIRLY
GOOD
The turnover of SC appears fairly good in its
line in both years.
SC’s net profit margin is fairly good in both years, but there is a decline in 2014.
SC’s return on total assets is fairly good in both years.
LIQUIDITY: AVERAGE
The current ratio of SC is normal in 2013 and appears fairly good in
2014.
SC’s quick ratio is maintained in a normal level in both years and improved in 2014.
The inventory of SC appears average in
both years.
The accounts receivable of SC is fairly large in both years.
SC’s turnover is in an average level in
both years, comparing with the size of its total assets.
LEVERAGE: FAIRLY
GOOD
The debt ratio of SC is average in
2013 and in a low level in 2014.
The risk for SC to go bankrupt is average.
Overall financial condition
of the SC: Fairly stable.
SC is considered medium-sized in its line with fairly stable financial
conditions. The fairly large amount of accounts receivable could be a threat to
SC’s financial situation.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.93 |
|
|
1 |
Rs.99.82 |
|
Euro |
1 |
Rs.70.05 |
INFORMATION DETAILS
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Analysis Done by
: |
KAS |
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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 |
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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 |
|
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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 |
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|
-- |
NB |
New Business |
-- |
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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.