MIRA
INFORM REPORT
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Report No. : |
353035 |
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Report Date : |
09.12.2015 |
IDENTIFICATION DETAILS
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Name : |
SEC ELECTRIC
MACHINERY CO., LTD. |
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Registered Office : |
No. 777, Gaolang East Road, Binhu District, Wuxi, Jiangsu Province,
214131 Pr |
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Country : |
China |
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Financials (as on) : |
30.09.2015 |
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Date of Incorporation : |
08.04.2003 |
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Com. Reg. No.: |
320211000067109 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject is engaged in manufacturing and selling motors. Products mainly include: AC motor, DC motor, Synchronous motor, shipping propulsion motor, flameproof motor |
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No. of Employee : |
455 (31.12.2014) |
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. 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 for the first time in modern history. Still, China's per capita income is below the world average.
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 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 also 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
SEC ELECTRIC
MACHINERY CO., LTD.
NO. 777, GAOLANG EAST ROAD, BINHU DISTRICT,
WUXI, JIANGSU PROVINCE, 214131 PR CHINA
TEL: 86 (0)
510-85628128 FAX: 86 (0)
510-85629652
EXECUTIVE SUMMARY
INCORPORATION DATE : APR. 8, 2003
REGISTRATION NO. : 320211000067109
REGISTERED LEGAL FORM : SHARES LIMITED COMPANY
STAFF STRENGTH :
455 (as of dec. 31, 2014)
REGISTERED CAPITAL : CNY 80,000,000
BUSINESS LINE :
MANUFACTURING & trading
TURNOVER :
cny 191,589,000 (Jan. 1 to SEP.
30, 2015)
EQUITIES :
cny 627,643,000 (AS OF sep. 30, 2015)
PAYMENT :
NO Complaints
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY GOOD
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.4001= USD
Adopted abbreviations:
ANS - amount not stated NS
- not stated SC - subject company (the
company inquired by you)
NA - not available CNY -
China Yuan Ren Min Bi
SC was registered as a limited liabilities
company at local Administration for Industry & Commerce (AIC - The official
body of issuing and renewing business license) on Apr. 8, 2003 and has been
under present ownership since 2011.
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
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, manufacturing,
processing, selling and service of AC and DC motors, generators, transformers,
inverters, and the unit of electrical control system; selling wood cases;
common transportation; importing and exporting various goods and technology
(excluding the goods and technology limited or prohibited by state). (With
permit if needed)
SC is mainly
engaged in manufacturing and selling motors.
Mr. Wang Jianyu is
the legal representative, chairman, director and general manager of SC at present.
SC is known
to have approx. 455 employees as of Dec. 31, 2014, including 80
technicians, 296 production staff, 4 financial staff, 43 sales staff and 32
administration staff.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in Wuxi. Our checks reveal that SC owns the total
premise, but the gross area of the premise is unspecific.
http://www.sec-motor.com/
The design is professional and the content is well organized. At present it is
in Chinese, English and other versions.
E-Mail: business@sec-motor.com
; liuk@sec-motor.com
SC was listed in Shanghai Stock Exchange Market on Nov. 4, 2014 with the
stock code 603988.
Changes of SC’s
registered information:
|
Date |
Item |
Before changed |
After changed |
|
2011-6 |
Chinese name |
无锡哈电电机有限公司 |
无锡中电电机有限公司 |
|
2011-8 |
Company name |
Wuxi SEC Electric Machinery Co., Ltd. |
Present one |
|
Legal form |
Limited liabilities company |
Present one |
|
|
2014-12-4 |
Registered capital |
CNY 60,000,000 |
Present one |
Note: In Jun., 2011, SC changed is Chinese name, while its English name
remains the same.
SC has got ISO Certificate.
Organization Code: 74818820X
Tax No.: 32020074818820X
Credibility Code: 9132020074818820X3
See below for SC as executive party (defendant).
|
Executed Party |
Wuxi SEC Electric Machinery Co., Ltd. |
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Court |
Binhu District, Wuxi City, Jiangsu Province People's Court |
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Date
of Case |
|
|
Case Number |
(2009) 01350 |
|
Case
Status |
Completed |
Remark: Due to the lack of information, we are unable to provide the cause of
action, judgment or other information.
MAIN SHAREHOLDERS: (As of Sep. 30, 2015)
Name % of Shareholding
Wang Jianyu 30
Wang Jiankai 27
Wang Panrong 15
Zhou Yue 3
Shenzhen Qianhai Khan Fund Management Inc. 0.99
Founder Bea Trust Co., Ltd. - Founder
Bea·Fairy Dragon 72 Securities Investment 0.97
Collection Fund Trust Plan (Literal
Translation)
China Securities Finance Corporation Limited 0.63
Yunnan International Trust Co., Ltd. - Qilong Darwin Technology Hedge
Phase 1 0.46
Securities Investment Collection Fund Trust
Plan (Literal Translation)
Zhou Zhicun 0.27
Wen Congbiao 0.24
Other shareholders 21.44
Shenzhen Qianhai Khan Fund Management Inc.
===========================
Incorporation Date: 2014-04-01
Registered No.: 440301109076183
Legal Representative: Dai Xuefeng
Website: http://www.khanfund.com/
China Securities Finance Corporation Limited
==========================
Incorporation date: 2011-10-28
Registration no.: 110000014357925
Legal Representative: Nie Qingping
Web-site: www.csf.com.cn
l Legal
Representative, Chairman, Director and General Manager:
Mr. Wang Jianyu, born in 1973, with junior
college education, senior economist. He is currently responsible for the
overall management of SC.
Working Experience(s):
At present Working in SC as legal representative, chairman,
director and general manager.
Also working in SEC Electric Machinery Co.,
Ltd. Wuxi Motor Design Institute and SEC Electric Machinery Co., Ltd. Shanghai
Branch as principal.
l Vice Chairman and
Director:
Mr. Wang Jiankai, born in 1969, with junior
college education. He is currently responsible for the overall management of
SC.
Working Experience(s):
At present Working in SC as vice chairman and director.
l
Vice Managers:
Mr. Shen Guoxin , born in 1968, with master’s degree, senior economist.
Mr. Liu Ka, born in 1981, with university education, assistant engineer.
Mr. Yang Zhiming , born in 1963, with university education, senior
economist.
They are currently responsible for the daily
management of SC.
Working Experience(s):
At present Working in SC as vice managers.
l Directors:
Gu Zhenyu
Sun Xinwei
Han Qingdong
Yang Zhiming
l Supervisors:
Shi Hong
Du Weifeng
Hui Xiaoming
SC is mainly engaged
in manufacturing and selling motors.
SC’s products
mainly include: AC motor, DC motor, Synchronous motor, shipping propulsion
motor, flameproof motor.
SC sources its
materials 80% from domestic market and 20% from overseas market. SC sells 85% of
its products in domestic market and 15% 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’s management declined to release
its main clients and suppliers.
Trademarks & patents
Registration no.: 3732593
Registration date: 2005-11-21
Trademark design: 
Registration no.: 3819112
Registration date: 2006-1-7
Trademark design: 
Branches:
SEC Electric Machinery Co., Ltd. Wuxi Motor Design Institute
===================================
Incorporation
date: 2012-04-01
Registration
no.: 320211000202834
Principal:
Wang Jianyu
SEC Electric Machinery Co., Ltd. Shaanxi Branch
===================================
Incorporation
date: 2012-4-6
Registration
no.: 610000200029397
Principal:
Cao Shichao
SEC Electric Machinery Co., Ltd. Shanghai Branch
===================================
Incorporation
date: 2015-1-15
Registration
no.: 310120002627357
Principal:
Wang Jianyu
America
Sales Office
===============
Address:
4482 Heritage Well Lane, Round Rock, Texas, USA 78665
E-mail:
eduardo@sec-motor.com
Mobile:
+1 (512) 483 1134
Tel.:
+1 (512)953 1010
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.
SC’s bank
details are not disclosed at present.
Balance Sheet
Unit: CNY’000
|
|
As
of Sep. 30, 2015 |
As
of Dec. 31, 2014 |
|
54,558 |
359,869 |
|
|
Derivative financial assets |
284,000 |
0 |
|
Notes receivable |
53,081 |
45,162 |
|
Accounts receivable |
156,768 |
136,214 |
|
Advances to suppliers |
10,374 |
5,416 |
|
Other receivables |
4,263 |
3,401 |
|
Inventory |
121,634 |
116,324 |
|
Other current assets |
0 |
4,743 |
|
|
------------------ |
------------------ |
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Current assets |
684,678 |
671,129 |
|
Fixed assets |
80,750 |
90,712 |
|
Projects under
construction |
0 |
1,241 |
|
Intangible
assets |
32,753 |
33,446 |
|
Deferred tax
assets |
4,742 |
4,767 |
|
Other assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Total assets |
802,923 |
801,295 |
|
|
============= |
============= |
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Short loans |
0 |
0 |
|
Bills payable |
24,660 |
35,484 |
|
Accounts payable |
74,356 |
88,505 |
|
Advances from
clients |
67,264 |
58,698 |
|
Payroll payable |
3,506 |
6,711 |
|
Taxes payable |
3,660 |
244 |
|
Other payable |
1,834 |
2,069 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
175,280 |
191,711 |
|
Deferred tax
liabilities |
0 |
600 |
|
|
------------------ |
------------------ |
|
Total liabilities |
175,280 |
192,311 |
|
Equities |
627,643 |
608,984 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
802,923 |
801,295 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
Jan. 1 to Sep.
30, 2015 |
As of Dec. 31,
2014 |
|
Turnover |
191,589 |
330,502 |
|
Cost of goods
sold |
117,875 |
205,228 |
|
Taxes and
additional of main operation |
1,692 |
3,089 |
|
Sales expense |
14,171 |
20,052 |
|
Management expense |
28,987 |
42,515 |
|
Finance expense |
-4,091 |
-2,700 |
|
Assets impairment loss |
-167 |
10,140 |
|
Investment
income |
5,980 |
0 |
|
Non-operating
income |
3,025 |
13,678 |
|
Non-operating expense |
188 |
3,217 |
|
Profit before
tax |
41,939 |
62,639 |
|
Less: profit tax |
6,316 |
8,299 |
|
Profits |
35,623 |
54,340 |
Important Ratios
=============
|
|
As of Sep. 30,
2015 |
As of Dec. 31,
2014 |
|
*Current ratio |
3.91 |
3.50 |
|
*Quick ratio |
3.21 |
2.89 |
|
*Liabilities
to assets |
0.22 |
0.24 |
|
*Net profit
margin (%) |
18.59 |
16.44 |
|
*Return on
total assets (%) |
4.44 |
6.78 |
|
*Inventory
/Turnover ×365 |
/ |
129 days |
|
*Accounts
receivable/Turnover ×365 |
/ |
151 days |
|
*Turnover/Total
assets |
0.24 |
0.41 |
|
*Cost of goods
sold/Turnover |
0.62 |
0.62 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in its line.
l
SC’s net profit margin is good.
l
SC’s return on total assets is fairly good in 2014,
but average in the first three quarters of 2015.
l
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: FAIRLY
GOOD
l
The current ratio of SC is maintained in a fairly
good level.
l
SC’s quick ratio of SC is maintained in a fairly
good level.
l
The inventory of SC is average.
l
The accounts receivable of SC is average.
l
SC has no short loans in both 2014 and the first
three quarters of 2015.
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: Fairly good.
SC is considered medium-sized in its line with fairly good financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.80 |
|
UK Pound |
1 |
Rs.100.49 |
|
Euro |
1 |
Rs.72.52 |
|
CNY |
1 |
Rs. 10.40 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
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Report Prepared
by : |
ASH |
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.