MIRA
INFORM REPORT
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Report No. : |
352035 |
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Report Date : |
10.12.2015 |
IDENTIFICATION DETAILS
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Name : |
SHENZHEN KENXINDA TECHNOLOGY CO., LTD. |
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Registered Office : |
3 & 18/F, Fuchun Orient Building, Shennan Road, Futian District
Shenzhen, Guangdong Province 518040 Pr |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
23.05.2007 |
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Com. Reg. No.: |
440301103417318 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is
engaged in developing, manufacturing, and selling mobile phone, wireless communications
terminal products. |
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No. of Employee : |
953 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 : |
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, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
China |
A2 |
A2 |
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Risk Category |
ECGC Classification |
|
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 AND ADDRESS
SHENZHEN KENXINDA TECHNOLOGY CO., LTD.
3 & 18/F,
FUCHUN ORIENT BUILDING, SHENNAN ROAD, FUTIAN DISTRICT
SHENZHEN, GUANGDONG
PROVINCE 518040 PR CHINA
TEL: 86 (0)
755-82571246/82709661/82766979
FAX: 86 (0)
755-82571493
EXECUTIVE SUMMARY
Date
of Registration : may
23, 2007
REGISTRATION
NO. :
440301103417318
LEGAL
FORM : Limited liabilities company
REGISTERED
CAPITAL : CNY 20,000,000
staff :
953
BUSINESS
CATEGORY : development &
MANUFACTURING & TRADING
Revenue :
CNY 317,940,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY 27,760,000 (AS OF DEC. 31, 2014)
WEBSITE : www.kenxinda.com.cn
& www.kenxinda.co.in
E-MAIL :
consultant@kenxinda.com
PAYMENT
:
AVERAGE
MARKET
CONDITION :
AVERAGE
FINANCIAL
CONDITION : Fairly
stable
OPERATIONAL
TREND : FAIRLY STEADY
GENERAL
REPUTATION : AVERAGE
EXCHANGE
RATE : CNY
6.39 = 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 one-person limited
liabilities company of PRC on May 23, 2007. However, SC changed to present
legal form, and was registered as a limited liabilities company of PRC with
State Administration for Industry & Commerce (SAIC) under registration No.:
440301103417318 on November 1,
2010.
SC’s Organization Code Certificate No.: 66268634-7
SC’s Tax No.: 440300662686347
SC’s registered capital: CNY 20,000,000
SC’s paid-in capital: CNY 20,000,000
Registration
Change Record:-
|
Date |
Change of
Contents |
Before the
change |
After the
change |
|
|
Registration No. |
4403011265339 |
440301103417318 |
|
|
Registered
Capital |
CNY 500,000 |
CNY 5,000,000 |
|
|
Registered
Capital |
CNY 5,000,000 |
CNY 20,000,000 |
|
|
Legal Form |
One-Person Limited
Liabilities Company |
Limited
Liabilities Company |
|
Shareholder (s) (% of Shareholding) |
Zou Lili 100% |
Zhang Wenku 51% Zou Lili 49% |
Current Co
search indicates SC’s shareholders & chief executives are as follows:-
|
Name of Shareholder
(s) |
% of
Shareholding |
|
Zhang Wenku |
51 |
|
Zou Lili |
49 |
SC’s Chief
Executives:-
|
Position |
Name |
|
Legal Representative, Chairman and General Manager |
Zou Lili |
|
Supervisor |
Wang Shengjun |
RECENT DEVELOPMENT
No recent development
was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Zhang Wenku 51
Zou Lili 49
MANAGEMENT
Zou Lili, Legal Representative, Chairman
and General Manager
----------------------------------------------------------------------------------------------
Ø
Gender:
F
Ø
Working
experience (s):
At present, working in SC as legal representative, chairman
and general manager
Wang Shengjun, Supervisor
------------------------------------------------
Ø
Gender:
M
BUSINESS OPERATION
SC’s registered business scope includes
technology development and sales of wireless communications terminal products,
mobile phone, electronic communication equipment, electronic products, production
of mobile phone; other domestic trade
SC is mainly engaged in developing,
manufacturing, and selling mobile phone, wireless communications terminal
products.
SC’s products
mainly include: wireless communications terminal products, mobile phone, electronic
communication equipment, electronic products
Brands:
SC sources its materials 90% from domestic market, and 10% from overseas
market. SC sells 50% of its products in domestic market, and 50% 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
Client*
------------------
Lcvv International S.A.S.
Staff
& Office:
--------------------------
SC is known to have approx. 953 staff at present.
SC owns an area as its operating office and
factory, but the detailed information is unknown.
RELATED COMPANY
Branches,
Shenzhen Kenxinda Technology Co., Ltd. Baoan Branch
-------------------------------------------
Registration No.: 440306105280333
Principal: Wang Jun
Date of Registration:
Shenzhen Kenxinda Technology Co., Ltd. Futian
Branch
----------------------------------------------
Registration No.: 440301106369561
Principal: Wang Xiaojiao
Date of Registration:
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
The bank
information of SC is not filed in local SAIC.
FINANCIALS
Balance
Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
Cash |
46,680 |
35,996 |
|
Notes receivable |
0 |
0 |
|
Accounts receivable |
37,140 |
59,806 |
|
Advances to suppliers |
3,596 |
3,787 |
|
Other receivable |
11,049 |
13,411 |
|
Inventory |
86,233 |
94,519 |
|
Prepaid expenses |
0 |
0 |
|
Other current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
184,698 |
207,519 |
|
Fixed assets |
2,968 |
3,114 |
|
Construction in progress |
0 |
0 |
|
Intangible assets |
0 |
0 |
|
Long-term prepaid expenses |
0 |
0 |
|
Deferred income tax assets |
0 |
0 |
|
Other non-current assets |
185 |
165 |
|
|
------------------ |
------------------ |
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Total assets |
187,851 |
210,798 |
|
|
============= |
============= |
|
Short-term loans |
0 |
0 |
|
Notes payable |
0 |
3,727 |
|
Accounts payable |
163,985 |
165,366 |
|
Wages payable |
2,400 |
3,431 |
|
Taxes payable |
-2,845 |
-8,199 |
|
Advances from clients |
0 |
400 |
|
Other payable |
591 |
19,717 |
|
Accrued expenses |
0 |
0 |
|
Other current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current liabilities |
164,131 |
184,442 |
|
Non-current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total liabilities |
164,131 |
184,442 |
|
Equities |
23,720 |
26,356 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
187,851 |
210,798 |
|
|
============= |
============= |
Income
Statement
|
Unit: CNY’000 |
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
|
Revenue |
607,075 |
472,251 |
|
Cost of sales |
-- |
433,182 |
|
Sales expense |
-- |
5,981 |
|
Management expense |
-- |
27,316 |
|
Finance expense |
-- |
3,233 |
|
Profit before tax |
2,897 |
2,645 |
|
Less: profit tax |
2,462 |
9 |
|
Profits |
435 |
2,636 |
Financial Summary
|
Unit: CNY’000 |
As
of Dec. 31, 2014 |
|
Total assets |
141,510 |
|
|
------------- |
|
Total liabilities |
113,750 |
|
Equities |
27,760 |
|
|
------------- |
|
Revenue |
317,940 |
|
Profit before tax |
1,680 |
|
Less: profit tax |
280 |
|
Profits |
1,400 |
Important Ratios
|
|
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
As
of Dec. 31, 2014 |
|
*Current ratio |
1.13 |
1.13 |
-- |
|
*Quick ratio |
0.60 |
0.61 |
-- |
|
*Liabilities
to assets |
0.87 |
0.87 |
0.80 |
|
*Net profit
margin (%) |
0.07 |
0.56 |
0.44 |
|
*Return on
total assets (%) |
0.23 |
1.25 |
0.99 |
|
*Inventory /
Revenue ×365 |
52 days |
74 days |
-- |
|
*Accounts
receivable / Revenue ×365 |
23 days |
47 days |
-- |
|
*Revenue /
Total assets |
3.23 |
2.24 |
2.25 |
|
*Cost of sales
/ Revenue |
-- |
0.92 |
-- |
FINANCIAL COMMENTS
PROFITABILITY: AVERAGE
l
The revenue
of SC appears fairly good in its line, and it decreased year by year.
l
SC’s
net profit margin is average in three years.
l
SC’s
return on total assets is average in three years.
l
SC’s
cost of sales is fairly high, comparing with its revenue.
LIQUIDITY: AVERAGE
l
The
current ratio of SC is maintained in a normal level.
l
SC’s
quick ratio is maintained in a fair level.
l
The
inventory of SC appears large.
l
The
accounts receivable of SC appears average.
l
SC has
no short-term loans.
l
SC’s
revenue is in an average level, comparing with the size of its total assets.
LEVERAGE: FAIR
l
The
debt ratio of SC is high.
l
The
risk for SC to go bankrupt is average.
Overall financial condition of the SC:
Fairly Stable.
CONCLUSIONS
SC is considered
medium-sized in its line with fairly 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.10.36 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
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.