MIRA INFORM REPORT
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Report No. : |
305895 |
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Report Date : |
06.02.2015 |
IDENTIFICATION DETAILS
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Name : |
GUANGZHOU AIRHORSE COMPRESSOR CO., LTD. |
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Registered Office : |
Block 5, Changlong Industrial Zone, Changlong Village, Guangshan Road,
Luogang District, Guangzhou, Guangdong Province 510660 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
10.09.2012 |
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Com. Reg. No.: |
440108000064455 |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
Subject is engaged in manufacturing and selling air compressors. |
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No. of Employee : |
28 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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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 – December 31, 2014
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Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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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. 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 and expanded the daily trading band within which the RMB is permitted to fluctuate. 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 2013 stood as the second-largest economy in the world after the US, having surpassed Japan in 2001. The dollar values of China's agricultural and industrial output each exceed those of the US; China is second to the US in the value of services it produces. Still, per capita income is below the world average. 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 2011 more than 250 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.
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Source
: CIA |
Company
name and address
GUANGZHOU AIRHORSE
COMPRESSOR CO., LTD.
BLOCK 5, CHANGLONG INDUSTRIAL ZONE, CHANGLONG VILLAGE,
GUANGSHAN ROAD, LUOGANG DISTRICT, GUANGZHOU,
GUANGDONG PROVINCE 510660 PR CHINA
TEL: 86 (0) 20-38090459/32376170 FAX:
86 (0) 20-38090400/32376096
EXECUTIVE
SUMMARY
INCORPORATION DATE : SEP. 10, 2012
REGISTRATION NO. : 440108000064455
REGISTERED LEGAL FORM : One-person Limited
Liability Company
STAFF STRENGTH :
28
REGISTERED CAPITAL : CNY 500,000
BUSINESS LINE :
MANUFACTURING & TRADING
TURNOVER :
CNY 15,090,000 (AS OF DEC. 31,
2013)
EQUITIES :
CNY 270,000 (AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION :
FAIR
OPERATIONAL TREND :
FAIR
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.25= USD
Adopted abbreviations:
ANS - amount not stated NS
- not stated SC - subject company (the
company inquired by you)
NA - not available CNY
- China Yuan Renminbi
HISTORY
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 Sep. 10, 2012,
and later was changed to the present legal form.
Company Status: One-person Limited Liability Company
Single person LLC refers to a limited liability company set up by only
one natural person or legal person as the single shareholder of it.
The minimum registered capital of Single person LLC is CNY100,000. The
shareholder’s capital contributes, as set out by the articles of associations
should be a lump-sum payment in full.
One natural person can only invest in and set up one limited liability
company, which is not permitted to invest in and set up a new Single person
LLC.
As to any one-person limited liability company, the sole-investor nature
of the natural person or legal person shall be indicated in the registration
documents of the company and shall be indicated in the business license thereof
as well.
The regulation of Single person LLC should be set up by the shareholder
The regulation of Single person LLC has no shareholder meeting.
SC’s
registered business scope includes manufacturing and selling air compressors,
purification equipment and spare parts; providing after-sale service; importing
and exporting commodities and technologies (with permit if needed).
SC is mainly
engaged in manufacturing and selling air compressors.
Huang Junfeng is legal representative, chairman and general
manager of SC at present.
SC is known to
have approx. 28 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in the industrial zone of Guangzhou. The detailed premise information is unspecified.
Note:
SC’s office address: Room 202, Yanqiao Building, No. 89, Yanling Road,
Guangzhou, Guangdong Province
WEB
SITE
http://www.ahaircompressor.com/
The design is professional and the content is well organized. At present the web
site is in Chinese and English versions.
E-mail: airhorse@ahaircompressor.com
KEY
EVENTS/RECENT DEVELOPMENT
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the
change |
After the change |
|
Unknown |
Legal form |
Limited liabilities co. |
Present one |
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Shareholders |
Huang Junfeng Xie Guifu |
Present one |
Organization code: 052592044
LITIGATION
For the past two years there is no record of litigation.
MAIN
SHAREHOLDERS
Name
% of Shareholding
Huang Junfeng 100
MANAGEMENT
l Legal
representative, chairman and general manager:
Huang Junfeng is currently responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as legal representative, chairman
and general manager.
l Supervisor:
Xie Guifu
BUSINESS
OPERATIONS
SC is mainly engaged
in manufacturing and selling air compressors.
SC’s products mainly include Direct Driven Screw Air compressors, Belt
Drive Screw Air Compressors, etc.
SC sources its
materials 100% from domestic market. SC sells 40% in domestic market and 60% to
overseas market.
The buying terms of SC include Check, T/T and Credit of
30-60 days. The payment terms of SC include Check, T/T, L/C and Credit of 30-60
days.
Note:
SC declined to release its major suppliers and clients.
Trademark &
Patents
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Registration No. |
10296321 |
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Registration
Date |
2013-4-21 |
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Trademark Design |
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RELATED
COMPANIES
SC is not known to have the subsidiary at present.
PAYMENT
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.
BANKING
SC’s accountant
refused to release the bank details.
FINANCIAL
HIGHLIGHTS
Balance
Sheet
Unit: CNY’000
|
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As
of Dec. 31, 2013 |
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Cash & bank |
1,900 |
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Inventory |
550 |
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Accounts
receivable |
-1,210 |
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Other
receivables |
10 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
1,250 |
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Fixed assets net
value |
40 |
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Projects under
construction |
0 |
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Intangible and
other assets |
0 |
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------------------ |
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Total assets |
1,290 |
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=========== |
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Short loan |
0 |
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Accounts payable |
840 |
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Advances from
clients |
0 |
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Taxes payable |
10 |
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Other Accounts
payable |
160 |
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Other current
liabilities |
10 |
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------------------ |
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Current
liabilities |
1,020 |
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Long term
liabilities |
0 |
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------------------ |
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Total
liabilities |
1,020 |
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Equities |
270 |
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------------------ |
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Total
liabilities & equities |
1,290 |
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=========== |
Income
Statement
Unit: CNY’000
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As of Dec. 31,
2013 |
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Turnover |
15,090 |
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Cost of goods sold |
14,360 |
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Sales expense |
0 |
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Management expense |
850 |
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Finance expense |
0 |
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Profit before tax |
-130 |
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Less: profit tax |
0 |
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Profits |
-130 |
Important
Ratios
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As of Dec. 31, 2013 |
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*Current ratio |
1.23
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*Quick ratio |
0.69
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*Liabilities
to assets |
0.79
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*Net profit
margin (%) |
-0.86
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*Return on
total assets (%) |
-10.08
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*Inventory
/Turnover ×365 |
14 days
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*Accounts
receivable/Turnover ×365 |
/ |
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*Turnover/Total
assets |
11.70
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* Cost of
goods sold/Turnover |
0.95
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FINANCIAL
COMMENTS
PROFITABILITY:
FAIR
l The turnover of SC
appears average.
l SC’s net profit
margin is fair.
l SC’s return on total
assets is fair.
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 normal
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC appears average.
l
SC has no short-term loan in 2013.
l
SC’s turnover is in a good level, comparing with
the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is fairly high.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fair.
REMARKS
small-sized in its line with fair financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 61.87 |
|
|
1 |
Rs. 94.07 |
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Euro |
1 |
Rs. 70.19 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
ASH |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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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 |
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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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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
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.