MIRA INFORM REPORT
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Report No. : |
352754 |
|
Report Date : |
10.12.2015 |
IDENTIFICATION DETAILS
|
Name : |
GUANGDONG XINBAO ELECTRICAL APPLIANCES HOLDINGS CO., LTD. |
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Registered Office : |
South Zhenghe Road, Leliu Town, Shunde District, Foshan Guangdong
Province 528322 Pr |
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Country : |
China |
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Financials (as on) : |
30.09.2015 (Consolidated) |
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Date of Incorporation : |
11.12.1995 |
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Com. Reg. No.: |
440000400003206 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing and
selling electric steam iron, blender, coffee maker, boiler, toaster and other
electric home appliances, mould, electric motor, circuit plate and other
electric products parts, plastic products, engineering plastic, precise
die-casting fitting, designing products, mould and embedded software, service
of certification testing. |
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No. of Employee : |
18,323 |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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 |
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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 AND ADDRESS
GUANGDONG XINBAO ELECTRICAL APPLIANCES
HOLDINGS CO., LTD.
SOUTH ZHENGHE ROAD,
LELIU TOWN, SHUNDE DISTRICT, FOSHAN
GUANGDONG PROVINCE
528322 PR CHINA
TEL: 86 (0)
757-25336206
FAX: 86 (0)
757-25521283
EXECUTIVE
SUMMARY
Date
of Registration :
DecEMBER 11, 1995
REGISTRATION
NO. : 440000400003206
LEGAL
FORM : Shares limited coMPANY
CHIEF
EXECUTIVE :
Guo Jiangang (LEGAL REPRESENTATIVE)
REGISTERED
CAPITAL : CNY 442,001,200
staff :
18,323
BUSINESS
CATEGORY : manufacturing &
TRADING
REVENUE :
CNY 4,828,749,000 (FROM JAN. 1, 2015 TO SEP. 30, 2015)
EQUITIES :
CNY 2,305,520,000 (AS OF SEP. 30, 2015)
WEBSITE : www.donlim.com
E-MAIL :
investor@donlim.com
PAYMENT
: AVERAGE
Recommended
Credit Limit : UP TO USD
20,000,000
MARKET
CONDITION :
COMPETITIVE
FINANCIAL
CONDITION : stable
OPERATIONAL
TREND : STEADY
GENERAL
REPUTATION : FAIRLY
GOOD
EXCHANGE
RATE : CNY
6.40 = 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.: 440000400003206.
SC’s Organization Code Certificate No.: 61765384-5
SC’s registered capital: CNY 442,001,200
SC’s paid-in capital: CNY 442,001,200
Registration
Change Record:-
|
Date |
Change of
Contents |
Before the
change |
After the
change |
|
|
Registered
Capital |
HKD 7,866,000 |
HKD 8,896,000 |
|
|
Registered
Capital |
HKD 8,896,000 |
HKD 10,032,000 |
|
|
Registered
Capital |
HKD 10,032,000 |
HKD 39,328,000 |
|
|
Legal
Representative |
Guo Jianqiang |
Guo Jiangang |
|
|
Registered
Capital |
HKD 39,328,000 |
HKD 44,828,000 |
|
|
Registered
Capital |
HKD 44,828,000 |
HKD 83,145,900 |
|
|
Registered
Capital |
HKD 83,145,900 |
HKD 110,837,200 |
|
|
Registered
Capital |
HKD 110,837,200 |
HKD 115,543,500 |
|
|
Registered
Capital |
HKD 115,543,500 |
CNY 332,600,000 |
|
|
Registered No. |
003538 |
440000400003206 |
|
|
Registered
Capital |
CNY 332,600,000 |
CNY 338,890,000 |
|
|
Registered
Capital |
CNY 338,890,000 |
CNY 366,001,200 |
|
-- |
Registered
Capital |
CNY 366,001,200 |
CNY 442,001,200 |
Current Co
search indicates SC’s shareholders & chief executives are as follows:-
|
Name of
Shareholder (s) (As of September 30, 2015) |
% of
Shareholding |
|
Guangdong Donlim
Kitchen Group Co., Ltd. |
46.16 |
|
Dong Ling
Electrical Group Co. Limited (Hong Kong) |
29.09 |
|
Xinyu City
Dongsheng Technology Co., Ltd. |
2.25 |
|
Central Huijin
Investment Co., Ltd. |
1.38 |
|
Harvest Fund-ABC-
Harvest Zhongzheng Financial Asset Management Programs |
0.47 |
|
Dacheng
Fund-ABC-Dacheng Zhongzheng Financial Asset Management Programs |
0.47 |
|
Boshi
Fund-ABC-Boshi Zhongzheng Financial Asset Management Programs |
0.47 |
|
Zhong
Ou-ABC-Zhong Ou Zhongzheng Financial Asset Management Programs |
0.47 |
|
China Southern
Fund-ABC-Southern Zhongzheng Financial Asset Management Programs |
0.47 |
|
ICBC Ruixin Fund-ABC- ICBC Ruixin Zhongzheng Financial
Asset Management Programs |
0.47 |
|
Other
Shareholders |
18.3 |
SC’s Chief
Executives:-
|
Position |
Name |
|
Legal
Representative, Chairman and General Manager |
Guo Jiangang |
|
Vice Chairman |
Guo Jianqiang |
|
CEO |
Zeng Zhanhui |
|
Vice CEO |
Wang Wei |
|
Zhu Xiaomei |
|
|
Yang Wenzhong |
|
|
Lan Pingqing |
|
|
Huang Decai |
|
|
Fang Xun |
|
|
Tong Yonghua |
|
|
He Dehong |
RECENT
DEVELOPMENT
SC is a listed
company in Shenzhen Stock Exchange Market with the code of 002705.
SHAREHOLDER
CHART & BACKGROUND
Name
%
of Shareholding
(As
of September 30, 2015)
----------------------------------
Guangdong Donlim
Kitchen Group Co., Ltd. 46.16
Dong Ling
Electrical Group Co. Limited (Hong Kong) 29.09
Xinyu City
Dongsheng Technology Co., Ltd. 2.25
Central Huijin
Investment Co., Ltd. 1.38
Harvest Fund-ABC-
Harvest Zhongzheng Financial
Asset Management
Programs 0.47
Dacheng
Fund-ABC-Dacheng Zhongzheng
Financial Asset
Management Programs 0.47
Boshi
Fund-ABC-Boshi Zhongzheng Financial
Asset Management
Programs 0.47
Zhong Ou-ABC-Zhong
Ou Zhongzheng Financial
Asset Management
Programs 0.47
China Southern
Fund-ABC-Southern Zhongzheng Financial
Asset Management
Programs 0.47
ICBC Ruixin Fund-ABC- ICBC Ruixin Zhongzheng Financial
Asset Management
Programs 0.47
Other Shareholders 18.3
Guangdong Donlim
Kitchen Group Co., Ltd.
------------------------------------------------------------
Date of
Registration: December 8, 1998
Registration No.:
440681000253387
Chief Executive : Guo Jiangang
Registered Capital:
CNY 80,644,000
Dong Ling
Electrical Group Co. Limited (Hong Kong)
------------------------------------------------------------------------
Registration No. :
0583025
Company Status:
Private
Active Status: Live
MANAGEMENT
Guo Jiangang, Legal Representative and
Chairman
------------------------------------------------------------------------------
Gender: M
Age: 49
Working experience
(s):
From 2003 to
present, working in SC as legal representative and chairman
Also working in
Guangdong Donlim Kitchen Group Co., Ltd. as legal representative
Guo Jianqiang, Vice Chairman
----------------------------------------------------
Gender: M
Age: 47
Qualification:
University
Working experience
(s):
At present, working
in SC as vice chairman
Also working in
Guangdong Donlim Electrical Appliances Co., Ltd. as legal representative
Zeng Zhanhui, CEO
--------------------------------------
Gender: M
Age: 43
Qualification: EMBA
Working experience
(s):
At present, working
in SC as CEO
Vice CEO
-------------
Wang Wei
Zhu Xiaomei
Yang Wenzhong
Lan Pingqing
Huang Decai
Fang Xun
Tong Yonghua
He Dehong
BUSINESS
OPERATION
SC’s registered
business scope includes manufacturing and selling electric steam iron, blender,
coffee maker, boiler, toaster and other electric home appliances, mould,
electric motor, circuit plate and other electric products parts, plastic
products, engineering plastic, precise die-casting fitting, designing products,
mould and embedded software, service of certification testing.
SC
is mainly engaged in manufacturing and selling small household electric
appliances.
Brand: ONLIM
SC’s products
mainly include: electric kettle, coffee maker, bakery machine, oven, toaster,
electric iron, and etc.
SC sources its materials
70% from domestic market, and 30% from overseas markets, mainly America. SC
sells 10% of its products in domestic market, and 90% to overseas market,
mainly European countries and America.
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*
-----------------------
Jarden Corporation
Hamilton Beach
Brands, Inc.
*Major suppliers*
---------------------
Zhejiang Hongbo
Technology Co., Ltd.
Guangzhou Hanwa
Trading Co., Ltd.
Staff & Office:
--------------------------
SC is known to
have approx. 18,323 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 the following
subsidiaries and branches:
Dragon Will
Enterprise Limited
Guangdong Weilin
Engineering Plastics Co., Ltd.
Guangdong Dongling
Electrical Appliances Co., Ltd.
Foshan City Shunde
District Qingling Die-Cast Products Co., Ltd.
Foshan Shunde
District Kehn Motor Co., Ltd.
Foshan City Shunde
District Junyue Electrical Equipments Co., Ltd.
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:
Wing Hang Bank
Foshan Sub-branch
AC#: 3401712158003
China Guangfa bank
AC#: N/a
FINANCIALS
Consolidated Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2014 |
As of Sep. 30, 2015 |
|
941,342 |
889,986 |
|
|
Notes receivable |
31,029 |
16,156 |
|
Accounts
receivable |
611,932 |
948,486 |
|
Advances to
suppliers |
33,293 |
34,540 |
|
Interest
receivable |
4,937 |
1,895 |
|
Other receivable |
62,827 |
26,167 |
|
Inventory |
898,805 |
664,615 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
205,249 |
670,323 |
|
|
------------------ |
------------------ |
|
Current assets |
2,789,414 |
3,252,168 |
|
Long-term equity
investment |
0 |
19,418 |
|
Fixed assets |
1,216,169 |
1,242,887 |
|
Construction in
progress |
56,466 |
65,539 |
|
Engineering
materials |
0 |
0 |
|
Intangible assets |
187,941 |
190,215 |
|
Development
expenditure |
0 |
0 |
|
Goodwill |
0 |
0 |
|
Long-term prepaid
expenses |
25,792 |
23,843 |
|
Deferred income
tax assets |
57,467 |
27,763 |
|
Other non-current
assets |
45,676 |
131,326 |
|
|
------------------ |
------------------ |
|
Total assets |
4,378,925 |
4,953,159 |
|
|
============= |
============= |
|
Short-term loans |
244,195 |
513,608 |
|
Notes payable |
1,003,766 |
1,069,822 |
|
Accounts payable |
576,318 |
654,278 |
|
Advances from
clients |
105,675 |
124,234 |
|
Payroll payable |
136,312 |
138,607 |
|
Tax payable |
45,400 |
53,802 |
|
Interest payable |
475 |
161 |
|
Dividends payable |
0 |
0 |
|
Other payable |
82,709 |
93,014 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
2,194,850 |
2,647,526 |
|
Non-current
liabilities |
1,214 |
113 |
|
|
------------------ |
------------------ |
|
Total liabilities |
2,196,064 |
2,647,639 |
|
Equities |
2,182,861 |
2,305,520 |
|
|
------------------ |
------------------ |
|
Total liabilities
& equities |
4,378,925 |
4,953,159 |
|
|
============= |
============= |
Consolidated Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2014 |
From Jan. 1, 2015 to Sep. 30, 2015 |
|
Revenue |
5,668,888 |
4,828,749 |
|
Cost of sales |
4,666,214 |
3,974,925 |
|
Taxes and
surcharges |
35,280 |
28,464 |
|
Sales expense |
228,459 |
199,375 |
|
Management expense |
473,035 |
388,675 |
|
Finance expense |
13,183 |
-51,847 |
|
Investment income |
32,142 |
13,180 |
|
Non-operating
income |
16,970 |
13,771 |
|
Non-operating expense |
6,736 |
5,641 |
|
Profit before tax |
279,842 |
289,677 |
|
Less: profit tax |
67,250 |
69,424 |
|
Profits |
212,592 |
220,253 |
Important Ratios
=============
|
|
As of Dec. 31, 2014 |
As of Sep. 30, 2015 |
|
*Current ratio |
1.27 |
1.23 |
|
*Quick ratio |
0.86 |
0.98 |
|
*Liabilities to
assets |
0.50 |
0.53 |
|
*Net profit
margin (%) |
3.75 |
4.56 |
|
*Return on total
assets (%) |
4.85 |
4.45 |
|
*Inventory /
Revenue ×365/270 |
58 days |
38 days |
|
*Accounts
receivable / Revenue ×365/270 |
40 days |
54 days |
|
*Revenue / Total
assets |
1.29 |
0.97 |
|
*Cost of sales /
Revenue |
0.82 |
0.82 |
FINANCIAL
COMMENTS
PROFITABILITY: AVERAGE
The revenue of SC
appears fairly good in its line.
SC’s net profit
margin is average.
SC’s return on
total assets is average.
SC’s cost of sales
is average, comparing with its revenue.
LIQUIDITY: AVERAGE
The current ratio
of SC is maintained in a normal level.
SC’s quick ratio is
maintained in a normal level.
The inventory of SC
appears average.
The accounts
receivable of SC appears average.
The short-term
loans of SC appear large.
SC’s revenue is in
an average level, comparing with the size of its total assets.
LEVERAGE: FAIRLY GOOD
The debt ratio of
SC is average.
The risk for SC to
go bankrupt is low.
Overall financial condition of the SC:
Stable.
CONCLUSIONS
SC is considered
large-sized in its line with stable financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.75 |
|
|
1 |
Rs.100.29 |
|
Euro |
1 |
Rs.72.89 |
|
CNY |
1 |
Rs.10.37 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
ANK |
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.