MIRA INFORM REPORT
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Report No. : |
335756 |
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Report Date : |
10.08.2015 |
IDENTIFICATION DETAILS
|
Name : |
EDAN INSTRUMENTS
INC. |
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|
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Registered Office : |
3/F-B, Nanshan Medical Equipments Park, No. 1019
Nanhai Rd., Shekou Nanshan District,
Shenzhen, Guangdong Province 518067
Pr |
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|
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Country : |
China |
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|
Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
02.08.1995 |
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Com. Reg. No.: |
440301501133163 |
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Legal Form : |
Shares Limited Company |
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|
|
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Line of Business : |
Subject
is mainly engaged in manufacturing and selling medical equipments. |
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No. of Employees : |
1,319 |
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 |
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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
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
|
High |
B2 |
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Very High |
C1 |
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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, 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.
|
Source
: CIA |
Company
Name and Address
EDAN INSTRUMENTS INC.
3/F-B, NANSHAN
MEDICAL EQUIPMENTS PARK, NO. 1019 NANHAI RD., SHEKOU NANSHAN DISTRICT, SHENZHEN,
GUANGDONG PROVINCE 518067 PR CHINA
TEL: 86 (0)
755-26882220
FAX: 86 (0)
755-26898330/26882333
EXECUTIVE
SUMMARY
Date of Registration : AUGUST 2, 1995
REGISTRATION NO. : 440301501133163
LEGAL FORM : Shares limited coMPANY
REGISTERED CAPITAL : CNY 234,000,000
staff : 1,319
BUSINESS CATEGORY : manufacturing & TRADING
REVENUE : CNY 522,776,000
(AS OF DEC. 31, 2014)
EQUITIES : CNY
1,162,598,000 (AS OF DEC. 31, 2014)
WEBSITE : www.edan-instruments.com
E-MAIL : info@edan.com.cn
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY GOOD
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : FAIRLY GOOD
EXCHANGE RATE : CNY 6.21 = 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 shares limited company of PRC with State Administration of Industry &
Commerce (SAIC) under registration No.: 440301501133163.
SC’s Organization Code Certificate No.:
19236720-1
SC’s Tax No.: 440301192367201
SC’s Customs Registration No.: 4403160115
SC’s registered capital: CNY 234,000,000
SC’s paid-in capital: CNY 234,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2006-5-12 |
Registered Capital |
CNY 5,000,000 |
CNY 10,000,000 |
|
2008-11-14 |
Registered Capital |
CNY 10,000,000 |
CNY 50,626,500 |
|
Legal Form |
Limited
Liabilities Company |
Chinese-Foreign
Equity Joint Venture Enterprise |
|
|
Registration No. |
4403012077991 |
440301501133163 |
|
|
2009-12-30 |
Registered Capital |
CNY 50,626,500 |
CNY 53,256,632 |
|
2010-3-30 |
Registered Capital |
CNY 53,256,632 |
CNY 75,000,000 |
|
Legal Form |
Chinese-Foreign
Equity Joint Venture Enterprise |
Shares Limited Company |
|
|
2011-5-18 |
Registered Capital |
CNY 75,000,000 |
CNY 100,000,000 |
|
2013-10-16 |
Registered Capital |
CNY 100,000,000 |
cny 130,000,000 |
|
2014 |
Registered Capital |
cny 130,000,000 |
cny 195,000,000 |
|
2015-7-16 |
Registered Capital |
cny 195,000,000 |
CNY 234,000,000 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) (As of March 31,
2015) |
% of Shareholding |
|
Zhang Hao |
20.86 |
|
Zu Youdong |
17.88 |
|
Xie Xicheng |
17.02 |
|
Industrial and Commercial Bank of
China-Baoyingfan Coastal Areas Growth Equity Securities Investment Fund |
3.61 |
|
GF Securities -Bank of Communications- GF
Collective Asset Management Plan (3) |
1.86 |
|
China
Construction Bank Co., Ltd.-Penghua Healthcare Equity Securities Investment
Fund |
1.56 |
|
China
Construction Bank-China International Morgan Alpha Equity Securities
Investment Fund |
1.55 |
|
National Social Security Fund No. 104 |
1.43 |
|
Baoying Hongli Value Security Investment
Fund |
1.16 |
|
National Social Security Fund No. 404 |
1 |
|
Other
Shareholders |
32.07 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal
Representative, Chairman and General Manager |
Zhang Hao |
|
Deputy
General Manager |
Zu Youdong |
|
Xie Xicheng |
RECENT
DEVELOPMENT
SC is a listed company in Shenzhen Stock Exchange Market with the code
of 300206.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
(As of March 31, 2015)
----------------------------------
Zhang Hao 20.86
Zu Youdong 17.88
Xie Xicheng 17.02
Industrial and Commercial Bank of
China-Baoyingfan Coastal Areas Growth Equity
Securities Investment Fund 3.61
GF Securities -Bank of Communications- GF
Collective Asset Management Plan (3) 1.86
China Construction Bank Co., Ltd.-Penghua
Healthcare Equity Securities Investment
Fund 1.56
China Construction Bank-China International
Morgan Alpha Equity Securities
Investment Fund 1.55
National Social Security Fund No. 104 1.43
Baoying Hongli Value Security Investment
Fund 1.16
National Social Security Fund No. 404 1
Other Shareholders 32.07
MANAGEMENT
Zhang Hao, Legal Representative, Chairman and General
Manager
------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 51
Ø Qualification: Master
Degree
Ø Working experience
(s):
At present, working in SC as legal
representative, chairman and general manager
Zu
Youdong, Deputy General Manager
--------------------------------------------------------------
Ø
Gender: M
Ø
Age: 53
Ø Qualification: Master
Degree
Ø Working experience
(s):
From 2010 to present, working in SC as deputy
general manager
Xie
Xicheng, Deputy General Manager
--------------------------------------------------------------
Ø
Gender: M
Ø
Age: 50
Ø Qualification: Master
Degree
Ø Working experience
(s):
From 2010 to present, working in SC as deputy
general manager
BUSINESS
OPERATION
SC’s registered business scope includes wholesale, import & export and
related business of electronics, instrumentation, telecommunication products,
three types of medical ultrasound equipment and related equipment, medical
X-ray equipment, clinical tests and analysis instrument, medical electronic
instruments and equipment(according to related regulations); computer software
development, production, wholesale, import and export and related ancillary
businesses; manufacturing, operating three types of medical ultrasound
equipment, medical electronic instruments and equipment(with permit if needed).
SC
is mainly engaged in manufacturing and selling medical equipments.
SC’s products mainly include: fetal
monitoring, ECG, patient monitoring, vascular assessment, ultrasound scanner,
veterinary, accessories, etc.
SC sources its materials 60% from domestic market and 40% from overseas
market. SC sells 30% of its products in domestic market and 70% 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 Customers*
----------------------
Pengbang Medical (HK) Co., Limited
Raine Industries Inc.
Spacelabs Medical, Inc.
Staff & Office:
--------------------------
SC is known
to have approx. 1,319 staff
at present.
SC owns an area as
its operating office and factory, but the detailed information is unknown.
RELATED
COMPANY
SC is known to have 9 subsidiaries
at present, and the following are the major ones.
n
Xi’an Edan Instruments Co., Ltd.
n
Edan Technology (HK) Co., Limited
n
Pengbang Medical (HK) Co., Limited
n
Edan Medical (India) Co., Ltd.
n
Edan Medical Diagnosis Technology Co., Ltd.
n
Shenzhen Edan Bio-electric Co. Ltd.
Etc.
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:
Bank of China Shenzhen Branch
AC#:
812500172508092014
FINANCIALS
Consolidated Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
|
924,435 |
778,630 |
|
|
Notes receivable |
0 |
0 |
|
Accounts receivable |
19,863 |
38,696 |
|
Advances to suppliers |
12,885 |
28,578 |
|
Interest receivable |
17,625 |
13,026 |
|
Other receivable |
14,226 |
17,799 |
|
Inventory |
60,838 |
88,316 |
|
Non-current assets within one year |
0 |
51 |
|
Other current assets |
0 |
71,687 |
|
|
------------------ |
------------------ |
|
Current assets |
1,049,872 |
1,036,783 |
|
Long-term equity investment |
13,234 |
12,411 |
|
Fixed assets |
37,697 |
42,232 |
|
Construction in progress |
108,408 |
202,821 |
|
Engineering materials |
0 |
0 |
|
Intangible assets |
56,839 |
52,987 |
|
Development expenditure |
0 |
0 |
|
Goodwill |
4,387 |
4,387 |
|
Long-term prepaid expenses |
1,437 |
57 |
|
Deferred income tax assets |
480 |
445 |
|
Other non-current assets |
0 |
2,967 |
|
|
------------------ |
------------------ |
|
Total assets |
1,272,354 |
1,355,090 |
|
|
============= |
============= |
|
Short-term loans |
0 |
0 |
|
Notes payable |
52 |
0 |
|
Accounts payable |
27,098 |
42,728 |
|
Advances from clients |
15,008 |
13,773 |
|
Payroll payable |
4,409 |
5,050 |
|
Tax payable |
1,337 |
2,057 |
|
Interest payable |
0 |
0 |
|
Dividends payable |
0 |
0 |
|
Other payable |
6,510 |
26,092 |
|
Other current liabilities |
9,056 |
9,934 |
|
|
------------------ |
------------------ |
|
Current liabilities |
63,470 |
99,634 |
|
Non-current liabilities |
29,113 |
92,858 |
|
|
------------------ |
------------------ |
|
Total liabilities |
92,583 |
192,492 |
|
Equities |
1,179,771 |
1,162,598 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
1,272,354 |
1,355,090 |
|
|
============= |
============= |
Consolidated Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
|
Revenue |
454,607 |
522,776 |
|
Cost of
sales |
196,961 |
235,934 |
|
Taxes and
surcharges |
4,951 |
4,934 |
|
Sales expense |
96,421 |
116,571 |
|
Management expense |
160,147 |
195,051 |
|
Finance expense |
-22,185 |
-22,263 |
|
Investment income |
-3,254 |
-3,458 |
|
Non-operating income |
19,329 |
22,733 |
|
Non-operating expense |
113 |
1,128 |
|
Profit before tax |
33,654 |
11,412 |
|
Less: profit tax |
402 |
5 |
|
Profits |
33,252 |
11,407 |
Important Ratios
=============
|
|
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
|
*Current ratio |
16.54 |
10.41 |
|
*Quick ratio |
15.58 |
9.52 |
|
*Liabilities to assets |
0.07 |
0.14 |
|
*Net profit margin (%) |
7.31 |
2.18 |
|
*Return on total assets (%) |
2.61 |
0.84 |
|
*Inventory / Revenue ×365 |
49 days |
62 days |
|
*Accounts receivable / Revenue ×365 |
16 days |
28 days |
|
*Revenue / Total assets |
0.36 |
0.39 |
|
*Cost of sales / Revenue |
0.43 |
0.45 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIRLY GOOD
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 low, comparing with its
revenue.
LIQUIDITY: FAIRLY
GOOD
l
The current ratio of SC is maintained in a fairly
good level.
l
SC’s quick ratio is maintained in a fairly good
level.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC is maintained in an
average level.
l
SC has no short-term loans.
l
SC’s revenue is in a fair 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: Fairly Good.
CONCLUSIONS
SC is considered large-sized in its line with fairly good financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.81 |
|
|
1 |
Rs.98.93 |
|
Euro |
1 |
Rs.69.66 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
NIT |
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.