MIRA INFORM REPORT
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Report No. : |
356779 |
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Report Date : |
28.12.2015 |
IDENTIFICATION DETAILS
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Name : |
EAST GROUP
CO., LTD. |
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Registered Office : |
No. 6
Northern Industry Road, Songshan Lake Sci and Tech Industrial Park, Dongguan,
Guangdong Province 523808 Pr |
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Country : |
China |
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Financials (as on) : |
30.09.2015 |
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Date of Incorporation : |
21.06.2001 |
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Com. Reg. No.: |
914419007292294758 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject includes researching,
developing, manufacturing, and selling uninterruptible power supply,
emergency power supply, communication power supply, power integrated power supply,
industrial energy efficiency and power quality control system, and
intelligent charging system; photovoltaic module, inverter, controller and
other distributed generation device and smart microgrids project; embedded
software; technology consulting & services; importing and exporting
commodities. |
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No. of Employees : |
1,722 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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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) |
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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
EAST GROUP CO., LTD.
NO. 6 NORTHERN INDUSTRY ROAD,
SONGSHAN LAKE SCI AND
TECH INDUSTRIAL PARK, DONGGUAN,
GUANGDONG PROVINCE 523808 PR CHINA
TEL: 86 (0) 769-22898801/22897777
FAX: 86 (0) 769-87920552
EXECUTIVE
SUMMARY
Date of Registration : june 21, 2001
Unified social credit code : 914419007292294758
LEGAL FORM : Shares limited company
REGISTERED CAPITAL : CNY 250,460,000
staff :
1,722
BUSINESS CATEGORY : R
& D & MANUFACTURING & TRADING
REVENUE :
CNY 2,516,767,000 (Consolidated,
Jan. 1, 2015 to Sep. 30, 2015)
EQUITIES :
CNY 1,244,581,000 (Consolidated, as of Sep. 30, 2015)
WEBSITE : www.eastups.com
E-MAIL :
eastups@eastups.com
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : FAIRLY GOOD
EXCHANGE RATE :
CNY 6.45 = 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.: 914419007292294758.
SC’s Organization Code Certificate No.:
72922947-5
SC’s registered capital: cny 250,460,000
SC’s paid-in capital: cny 250,460,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2003-02-20 |
Registered
Capital |
CNY 1,800,000 |
CNY 20,000,000 |
|
2003-05-22 |
Registered
Capital |
CNY 20,000,000 |
CNY 30,680,000 |
|
2005-02-22 |
Registered
Capital |
CNY 30,680,000 |
CNY 77,100,000 |
|
2010-09-09 |
Registered
Capital |
CNY 77,100,000 |
CNY 78,060,000 |
|
2014-08-08 |
Registered
Capital |
CNY 78,060,000 |
CNY 89,450,000 |
|
2014 |
Registered
Capital |
CNY 89,450,000 |
CNY 178,900,000 |
|
2015-6-8 |
Registered
Capital |
CNY 178,900,000 |
cny 250,460,000 |
|
Company Name |
Guangdong East Power Co., Ltd. |
East Group Co., Ltd. |
|
|
-- |
Registration
No./ Unified
Social Credit Code |
440000000002132 |
914419007292294758 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) (As of September
30, 2015) |
% of Shareholding |
|
Yangzhou
Dongfang Group Co., Ltd. |
65.28 |
|
Dongguan
Huimeng Software Technology Co., Ltd. |
8.62 |
|
CUAM
Environment Protection. Industry Fund |
2.21 |
|
SC’s 1st
Employee Stock Ownership Plan |
0.87 |
|
China
Construction Bank- Guotai Jinding Value Selected Mixed Fund |
0.8 |
|
Ping An
Life Insurance Company of China- Universal-Individual Universal |
0.64 |
|
National
Social Securities Fund 112 Group |
0.61 |
|
Ping An
Life Insurance Company of China-Bonus-Individual Bonus |
0.52 |
|
Shanghai
Pudong Development Bank Co., Ltd.-Guotai Jinlong Sector-Select Equities Fund |
0.33 |
|
China
Construction Bank Co., Ltd.-Guotai Mid-cap and Small-cap Growth Stock Fund
(LOF) |
0.32 |
|
Other
Shareholders |
19.8 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal
Representative, Chairman and General Manager |
He Simu |
|
Vice
Chairman and Deputy General Manager |
Xu Haibo |
|
Deputy
General Manager |
Zhao Jiuhong |
|
Hu Zhiqiang |
|
|
Wang Gaoxiang |
|
|
Chen Yonghua |
|
|
Yu Wei |
RECENT
DEVELOPMENT
SC is a listed company in Shenzhen Stock Exchange Market with the code
of 300376.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
(As of September 30, 2015)
Yangzhou Dongfang Group Co., Ltd. 65.28
Dongguan Huimeng Software Technology Co.,
Ltd. 8.62
CUAM Environment Protection. Industry Fund 2.21
SC’s 1st Employee Stock Ownership Plan 0.87
China Construction Bank- Guotai Jinding
Value Selected Mixed Fund 0.8
Ping An Life Insurance Company of China-
Universal-Individual Universal 0.64
National Social Securities Fund 112 Group 0.61
Ping An Life Insurance Company of China-Bonus-Individual Bonus 0.52
Shanghai Pudong Development Bank Co.,
Ltd.-Guotai Jinlong Sector-Select
Equities Fund 0.33
China Construction Bank Co., Ltd.-Guotai
Mid-cap and Small-cap Growth
Stock Fund (LOF) 0.32
Other Shareholders 19.8
l Yangzhou Dongfang
Group Co., Ltd.
-------------------------------------------------
Registration No.: 321027000011778
Date of Registration: June 22, 1994
Legal Form: Limited Liabilities Company
Registered Capital: CNY 18,760,000
Legal Representative: He Simu
l Dongguan Huimeng
Software Technology Co., Ltd.
--------------------------------------------------------------------
Registration No.: 441900000885554
Legal Form: Limited Liabilities
Company
Registered Capital: CNY 7,710,000
MANAGEMENT
He Simu, Legal Representative, Chairman and General Manager
-----------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 50
Ø
Nationality: China
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal
representative, chairman and general manager
Also working in Yangzhou Dongfang Group Co.,
Ltd. as legal representative
Xu Haibo,
Vice Chairman and Deputy General Manager
------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 53
Ø
Nationality: China
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as vice chairman
and deputy general manager
Deputy
General Manager
---------------------------------
Zhao Jiuhong
Hu Zhiqiang
Wang Gaoxiang
Chen Yonghua
Yu Wei
BUSINESS
OPERATION
SC’s registered business scope includes researching,
developing, manufacturing, and selling uninterruptible power supply, emergency power
supply, communication power supply, power integrated power supply, industrial
energy efficiency and power quality control system, and intelligent charging
system; photovoltaic module, inverter, controller and other distributed
generation device and smart microgrids project; embedded software; technology
consulting & services; importing and exporting commodities.
SC is mainly
engaged in researching, developing, manufacturing and selling various power
supply.
SC’s products mainly include:
Line Interactive UPS
Online HF UPS
Online LF UPS
Home Inverter
Accessories
Brand: “EAST”.
SC sources its materials 100% from domestic
market. SC sells 60% of its products in domestic market, and 40% to overseas
market, mainly U.S.A., etc.
The buying terms
of SC include Check, T/T and Credit of 30-60 days. The payment terms of SC
include T/T, L/C and Credit of 30-60 days.
*Major Client*
-----------------
Ultimate Power Llc
Staff & Office:
--------------------------
SC is known
to have approx. 1,722 staff
at present.
SC owns an area as
its operating office & factory of approx. 20,000 sq. meters at the heading
address.
RELATED COMPANY
SC is known to have the
following subsidiaries, as follows,
-------------------------------------------------------------------------
Beijing
East Power Technology Co., Ltd.
Yangzhou
East Power System Technology Co., Ltd.
East
Power System Technology Co., Ltd.
OREMA
UPS Power Supply Technology Co., Ltd.
Guangdong
Aidibeike Software Technology Co., Ltd.
Shenzhen
Greenber Power Supply Technical 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
The bank information
of SC is not filed in local SAIC.
FINANCIALS
Consolidated Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2014 |
As of Sep. 30, 2015 |
|
445,656 |
509,900 |
|
|
Notes receivable |
6,051 |
23,618 |
|
Accounts receivable |
987,191 |
1,329,776 |
|
Advances to suppliers |
141,805 |
381,950 |
|
Other receivable |
15,974 |
38,699 |
|
Inventory |
322,031 |
567,474 |
|
Non-current assets within one year |
0 |
0 |
|
Other current assets |
223,918 |
41,312 |
|
|
------------------ |
------------------ |
|
Current assets |
2,142,626 |
2,892,729 |
|
Long-term investment |
35,000 |
108,243 |
|
Fixed assets |
263,815 |
260,257 |
|
Construction in progress |
615 |
38,968 |
|
Intangible assets |
56,316 |
56,190 |
|
Long-term deferred expenses |
1,333 |
2,839 |
|
Deferred income tax assets |
14,151 |
14,346 |
|
Other non-current assets |
8,113 |
119,379 |
|
|
------------------ |
------------------ |
|
Total assets |
2,521,969 |
3,492,951 |
|
|
============= |
============= |
|
Short-term loans |
0 |
30,000 |
|
Notes payable |
648,667 |
1,626,978 |
|
Accounts payable |
279,562 |
212,083 |
|
Wages payable |
15,888 |
10,485 |
|
Taxes payable |
21,639 |
18,809 |
|
Advances from clients |
66,874 |
37,537 |
|
Other payable |
97,113 |
82,268 |
|
Non-current liabilities maturing within one year |
0 |
0 |
|
Other current liabilities |
87,501 |
9,879 |
|
|
------------------ |
------------------ |
|
Current liabilities |
1,217,244 |
2,028,039 |
|
Non-current liabilities |
215,328 |
220,331 |
|
|
------------------ |
------------------ |
|
Total liabilities |
1,432,572 |
2,248,370 |
|
Equities |
1,089,397 |
1,244,581 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
2,521,969 |
3,492,951 |
|
|
============= |
============= |
Consolidated Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2014 |
Jan. 1,
2015 to Sep. 30, 2015 |
|
Revenue |
1,969,085 |
2,516,767 |
|
Cost of
sales |
1,495,016 |
2,083,207 |
|
Sales tax
and extra charges |
8,363 |
7,424 |
|
Sales expense |
163,911 |
112,265 |
|
Management expense |
104,353 |
104,682 |
|
Finance expense |
3,217 |
7,824 |
|
Asset impairment loss |
25,263 |
21,361 |
|
Investment income |
10,776 |
15,644 |
|
Non-operating income |
16,950 |
18,114 |
|
Non-operating expense |
373 |
226 |
|
Profit before tax |
196,317 |
213,535 |
|
Less: profit tax |
23,337 |
26,434 |
|
172,980 |
187,101 |
Important Ratios
=============
|
|
As of Dec. 31, 2014 |
As of Sep. 30, 2015 |
|
*Current ratio |
1.76 |
1.43 |
|
*Quick ratio |
1.50 |
1.15 |
|
*Liabilities to assets |
0.57 |
0.64 |
|
*Net profit margin (%) |
8.78 |
7.43 |
|
*Return on total assets (%) |
6.86 |
5.36 |
|
*Inventory / Revenue ×365/270 |
60 days |
61 days |
|
*Accounts receivable / Revenue ×365/270 |
183 days |
143 days |
|
*Revenue / Total assets |
0.78 |
0.72 |
|
*Cost of sales / Revenue |
0.76 |
0.83 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIRLY GOOD
l The revenue of SC
appears fairly good in its line.
l SC’s net profit
margin is fairly good.
l SC’s return on
total assets is fairly good.
l
SC’s cost of sales is average, 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 fairly good
level.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC appears large.
l
The short-term loan of SC appears small.
l
SC’s revenue is in an average level, comparing with
the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly Good.
CONCLUSIONS
SC is considered medium-sized in its line with fairly good financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.20 |
|
|
1 |
Rs.98.30 |
|
Euro |
1 |
Rs.72.41 |
|
CNY |
1 |
Rs.10.24 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
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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.