MIRA INFORM REPORT
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Report No. : |
354312 |
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Report Date : |
17.12.2015 |
IDENTIFICATION DETAILS
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Name : |
IRICO GROUP ELECTRONICS COMPANY LIMITED |
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Registered Office : |
No.
1 Caihong Road, Xianyang City,
Shaanxi Province, 712021 Pr
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Country : |
China |
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Financials (as on) : |
30.06.2015 |
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Date of Incorporation : |
10.09.2004 |
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Com. Reg. No.: |
610000100158913 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing and selling luminescent materials, liquid crystal
products and solar photovoltaic glass. |
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No. of Employees : |
4,197 (Group) |
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 : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
-- |
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) |
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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 and Address
IRICO GROUP ELECTRONICS COMPANY LIMITED
No. 1
caihong road, xianyang city,
shaanxi province,
712021 PR CHINA
TEL: 86 (0)
29-33332996 FAX: 86 (0)
29-33332623
EXECUTIVE
SUMMARY
INCORPORATION DATE : sep. 10, 2004
REGISTRATION NO. : 610000100158913
REGISTERED LEGAL FORM : Shares
limited company
STAFF STRENGTH : 4,197 (Group)
REGISTERED CAPITAL : CNY
2,232,349,400
BUSINESS LINE :
manufacture & tradE
TURNOVER :
CNY 843,080,000 (Consolidated, Jan. 1 to Jun. 30, 2015)
EQUITIES :
CNY 475,666,000 (Consolidated, As of Jun.
30, 2015)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND :
fairly steady
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY 6.4307 = 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 shares limited company
at provincial Administration for Industry & Commerce (AIC - The official
body of issuing and renewing business license).
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 5M. while that of the co. with foreign
investment is CNY 5M. The total capital of a co. which propose to apply for
publicly listed must be no less than CNY 30M. 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 road freight (the license is valid until April 16,
2018); R&D, manufacture and sales of color display device and its
supporting products and materials, electronic devices, vacuum electronic
device, electronic products; import and export of goods and technology
(excluding those limited or prohibited by the state); processing with imported
materials, processing with imported samples, assembling with imported parts,
and compensation trade in agreement; counter trade &
transit trade; R&D, manufacture and sales of computer software and hardware, chemical
products (excluding precursor and hazardous chemicals), information technology,
industrial control systems and complete equipment; mechanical processing,
repair; electronic information technology development, training and consulting
services; acquisition, processing and utilization of waste materials (excluding
hazardous waste, overseas usable waste and discarded automobiles); sales of
backlog material ; R&D, manufacture and sales of photovoltaic glass,
toughened glass, coated glass, conductive film glass and flat glass; R&D,
manufacture and sales of solar cell chip, solar cell module and its supporting
products, as well as silicon materials, deep processing glass new materials and
high-tech products.
SC is mainly
engaged in manufacturing and selling luminescent materials, liquid crystal
products and solar photovoltaic glass.
Mr. Guo Mengquan
is chairman and legal representative of SC at present.
SC is known to
have approx. 4,197 employees
(Group) at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in Xianyang. Detailed premise information is not
available at present.
http://www.irico.com.cn/
The design is professional and the content is well organized. At present it is
in Chinese and English versions.
E-mail: chdz@ch.com.cn
SC is listed on the main board of Hong Kong Stock Exchange (stock code:
00438).
No significant changes were found during our
checks with the local Administration for Industry and Commerce.
Organization Code:
766306601
See below for SC as executive party (defendant).
|
Executed Party |
Irico Group Electronics Company Limited |
|
Court |
Xianyang City Intermediate People's Court |
|
Date of Case |
2015-03-18 |
|
Case Number |
(2015) 00006 |
|
Claim Amount |
RMB 11,029,234 |
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Executed Party |
Irico Group Electronics Company Limited |
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Court |
Xianyang City Intermediate People's Court |
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Date of Case |
2012-03-22 |
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Case Number |
(2012) 00090 |
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Claim Amount |
RMB 8,500 |
|
Executed Party |
Irico Group Electronics Company Limited |
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Court |
Xianyang City Qindu District People's Court |
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Date of Case |
2011-09-22 |
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Case Number |
(2011) 00027 |
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Claim Amount |
RMB 0.01 |
Etc.
Remark: Due to the lack of information, we
are unable to provide the cause of action, judgment or other information.
MAIN
SHAREHOLDERS: (According to SC’s public information in local AIC)
Name Amount
(CNY) % of Shareholding
Irico Group Corporation 1,601,468,000 71.74
Overseas listed
foreign shareholders 630,881,400 28.26
Irico Group Corporation
====================
Registration no.: 100000000018209
Incorporation Date: 1982-03-30
Legal representative: Guo Mengquan
Tel: (029) 33334138
Fax: (029) 33313762
l Chairman and Legal
Representative:
Mr. Guo Mengquan, about 58 years old, graduated from Northwestern
Polytechnical University with a bachelor’s degree in control and manipulation of
aviation fluid mechanics and from Shaanxi MBA College with an MBA, senior
engineer at a professor level. He is currently responsible for the overall
management of SC.
Working Experience(s):
Mr. Guo joined the Group in September 1983. He once was the factory
manager of the glass factory under IRICO Colour Picture Tube Plant, the vice
chairman of A Share Company, the vice president, the president and a Director
of the Company and the deputy general manager of IRICO Group Corporation.
At present Working in SC as chairman and
legal representative;
Also working in Irico Group Corporation as
legal representative.
l General Manager:
Mr. Zou Changfu, about 56 years old, a bachelor’s degree holder and a
senior engineer. He is currently responsible for the daily management of SC.
Working Experience(s):
Mr. Zou joined the Group in August 1981. He
used to be the head (director) of No. 2 Colour Screen workshop, finished
product section, quality assurance section and technical and quality section of
the glass factory under IRICO Colour Picture Tube Plant, the general manager of
Hongyang (Shenzhen) Industrial and Trading Company, the general manager of
Kunshan IRICO MGG. Co., Ltd., the chairman of the board of directors of Kunshan
IRICO Yingguang Electronics Limited Company, and the general manager of the
purchase department, the assistant to the president and the vice president of
the Company.
At present Working in SC as general manager;
Also working in Xianyang IRICO Electronics
Parts Co., Ltd., Kunshan IRICO Industrial Co., Ltd., Zhuhai Caizhu Industrial
Co., Ltd. and IRICO (Hefei) Photovoltaic Co., Ltd. as legal representative,
etc.
l
Vice General Manager:
Hong Yuan
Han Bin
l
Director:
Huang Mingyan
Si Yuncong
Wang Zhicheng
l Supervisor:
Fu Jiuquan
Niu Xin’an
Wu Xiaoguang
Etc.
SC is mainly
engaged in manufacturing and selling luminescent materials, liquid crystal products
and solar photovoltaic glass.
SC’s products
mainly include: Photovoltaic Glass, New Electronic Materials, LCD Products and
LCD Glass Substrate.
SC sources its
materials 90% from domestic market, and 10% from overseas market. SC sells 70%
of its products in domestic market, and 30% 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 refused to release its
main suppliers and clients.
SC is known to invest in the following companies:
Xianyang IRICO
Electronics Parts Co., Ltd.
Kunshan
IRICO Industrial Co., Ltd.
Zhuhai
Caizhu Industrial Co., Ltd.
IRICO
(Hefei) Photovoltaic Co., Ltd.
Shaanxi
IRICO Electronics Glass Company Limited
Etc.
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 accountant
refused to release the bank details.
Consolidated
Balance Sheet
|
Unit: CNY’000 |
As of Jun. 30, 2015 |
As of Dec. 31, 2014 |
|
Property, plant and equipment |
1,008,091 |
6,488,813 |
|
Investment properties |
7,547 |
10,194 |
|
Leasehold land and land use rights |
118,772 |
206,200 |
|
Intangible assets |
0 |
28 |
|
Interests in associates |
31,924 |
72,040 |
|
Available for sale financial assets |
688,099 |
0 |
|
Deposits paid for acquisition of property,
plant and equipment |
252 |
267 |
|
|
------------------ |
------------------ |
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Non-Current assets |
1,854,685 |
6,777,542 |
|
|
------------------ |
------------------ |
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Inventory |
176,289 |
232,121 |
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Trade and bills receivables |
665,550 |
544,165 |
|
Other receivables, deposits and
prepayments |
178,770 |
945,783 |
|
Tax Recoverable |
3,140 |
3,140 |
|
Restricted bank balances |
67,005 |
12,400 |
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Bank balances and cash |
115,439 |
255,862 |
|
Non-current assets classified as held for
sale |
0 |
3,663 |
|
|
------------------ |
------------------ |
|
Current assets |
1,206,193 |
1,997,134 |
|
|
------------------ |
------------------ |
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Total assets |
3,060,878 |
8,774,676 |
|
|
=========== |
=========== |
|
Trade and bills payables |
567,213 |
694,325 |
|
Other payables and accruals |
416,913 |
716,488 |
|
Tax payables |
170 |
1,001 |
|
Bank and other borrowings – due within one year |
1,182,336 |
4,096,603 |
|
Termination benefits |
9,739 |
56,187 |
|
|
------------------ |
------------------ |
|
Current liabilities |
2,176,371 |
5,564,604 |
|
|
------------------ |
------------------ |
|
Bank and other borrowings – due after one year |
248,570 |
2,096,906 |
|
Deferred income |
118,895 |
396,789 |
|
Termination benefits |
34,552 |
72,569 |
|
Deferred tax liabilities |
6,824 |
7,232 |
|
|
------------------ |
------------------ |
|
Non-current liabilities |
408,841 |
2,573,496 |
|
|
------------------ |
------------------ |
|
Total liabilities |
2,585,212 |
8,138,100 |
|
Equities |
475,666 |
636,576 |
|
|
=========== |
=========== |
|
Total liabilities & equities |
3,060,878 |
8,774,676 |
|
|
============= |
============= |
Consolidated
Income Statement
|
Unit: CNY’000 |
Jan. 1~Jun. 30, 2015 |
|
Turnover |
843,080 |
|
Cost of sales |
819,621 |
|
Other operating income |
17,699 |
|
Selling and distribution costs |
23,016 |
|
Administrative expenses |
66,536 |
|
Other operating expenses |
57,044 |
|
Finance costs |
56,912 |
|
Impairment loss recognised in respect of the available-for-sale
financial asset |
99,859 |
|
Share of loss of associates |
641 |
|
Loss before tax |
-262,850 |
|
Income tax (expense) credit |
112 |
|
Loss for the period from continuing operations |
-262,962 |
|
Profit (loss) for the period from discontinued operation |
1,333,026 |
|
Profit (loss) for the period |
1,070,064 |
|
|
As of Dec. 31, 2014 |
|
Turnover |
2,218,276 |
|
Cost of sales |
2,263,015 |
|
Gain on disposal of subsidiaries |
119,396 |
|
Gain on disposal of an associate |
81,864 |
|
Other operating income |
96,079 |
|
Selling and distribution costs |
80,695 |
|
Administrative expenses |
420,024 |
|
Other operating expenses |
37,139 |
|
Finance costs |
276,938 |
|
Impairment loss recognised in respect of property, plant and equipment |
1,110,645 |
|
Share of loss of associates |
18,208 |
|
Loss before tax |
-1,691,049 |
|
Income tax (expense) credit |
1,293 |
|
Loss for the year |
-1,692,342 |
Important
Ratios
=============
|
|
As of Jun. 30, 2015 |
As of Dec. 31, 2014 |
|
*Current ratio |
0.55 |
0.36 |
|
*Quick ratio |
0.47 |
0.32 |
|
*Liabilities to assets |
0.84 |
0.93 |
|
*Net profit margin (%) |
126.92 |
-76.29 |
|
*Return on total assets (%) |
34.96 |
-19.29 |
|
*Inventory /Turnover ×365 |
/ |
39 days |
|
*Accounts receivable/Turnover ×365 |
/ |
/ |
|
*Turnover/Total assets |
0.28 |
0.25 |
|
* Cost of goods sold/Turnover |
0.97 |
1.02 |
PROFITABILITY: FAIRLY
GOOD
l The turnover of SC
appears good in its line.
l SC’s net profit
margin is poor in 2014, but good in the first half of 2015.
l SC’s return on
total assets is poor in 2014, but good in the first half of 2015.
l
SC’s cost of goods sold is high, comparing with its
turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a poor
level in 2014, but fair in the first half of 2015.
l
SC’s quick ratio is maintained in a poor level in
2014, but fair in the first half of 2015.
l
The inventory of SC appears average.
l
SC’s turnover is in a poor 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.
SC is considered large-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.85 |
|
|
1 |
Rs.100.58 |
|
Euro |
1 |
Rs.73.16 |
|
CNY |
1 |
Rs.10.28 |
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 : |
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.