MIRA INFORM REPORT

 

 

Report No. :

306919

Report Date :

10.02.2015

 

IDENTIFICATION DETAILS

 

Name :

GUANGZHOU MINGXIN ELECTRONIC CO., LTD.

 

 

Registered Office :

2/F, No. 105, Hetai Road, Hebian Village, Jiahe Street, Baiyun District, Guangzhou, Guangdong Province, 510660 Pr

 

 

Country :

China

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

18.11.2009

 

 

Com. Reg. No.:

440111000066424

 

 

Legal Form :

Limited Liabilities Company

 

 

Line of Business :

Manufacturing, processing and selling mobile phone and parts, hardware parts and computer parts; import and export of goods and technologies (excluding the hazard chemicals).

 

 

No. of Employee :

5

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Moderate

 

 

Payment Behaviour :

Slow

 

 

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

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

China

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

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.

 

Source : CIA


Company name and address

 

Guangzhou Mingxin Electronic Co., Ltd.

 

2/f, no. 105, hetai road, hebian village, jiahe street, baiyun district, guangzhou, GUANGDONG PROVINCE, 510660 PR CHINA

TEL: 86 (0) 20-26274480

FAX: 86 (0) 20-26274480

 

 

EXECUTIVE SUMMARY

 

INCORPORATION DATE                        : November 18, 2009

REGISTRATION NO.                              : 440111000066424

REGISTERED LEGAL FORM                 : LIMITED LIABILITIES COMPANY

CHIEF EXECUTIVE                                   : MR. zhuang yue (CHAIRMAN)

STAFF STRENGTH                                : 5

REGISTERED CAPITAL             : CNY 500,000

BUSINESS LINE                                    : processing and TRADING

TURNOVER                                          : CNY 110,000 (UNaudited, AS OF DEC. 31, 2013)

EQUITIES                                             : CNY 440,000 (UNaudited, AS OF DEC. 31, 2013)

PAYMENT                                            : AVERAGE

MARKET CONDITION                            : fair

FINANCIAL CONDITION                         : fair

OPERATIONAL TREND             : FAIRLY STEADY

GENERAL REPUTATION                       : AVERAGE

EXCHANGE RATE                                : CNY 6.25 = 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

 

 

HISTORY

 

Note: we dialed the given tel. no. and fax no. many times, but there is no one answered during the past days.

SC’s correct company name should be the heading one, while the given name belongs to its related company in Hong Kong.

 

SC was registered as a limited liabilities co. at local Administration for industry & commerce (AIC - the official body of issuing and renewing business license) on Nov. 18, 2009.

 

Company Status: Limited liabilities co.

This form of business in PR China is defined as a legal person. No more than fifty shareholders contribute its registered capital jointly. Shareholders bear limited liability to the extent of shareholding, and the co. is liable for its debts only to extent of its total assets. The characteristics of this form of co. are as follows:

Upon the establishment of the co., an investment certificate is issued to the each of shareholders.

The board of directors is comprised of three to thirteen members.

The minimum registered capital for a co. is CNY 30,000.

Shareholders may take their capital contributions in cash or by means of tangible assets or intangible assets such as industrial property and non-patented technology.

Cash contributed by all shareholders must account for at least 30% of the registered capital.

Existing shareholders have pre-exemption right to purchase shares of the co. offered for sale by the other shareholders and to subscribe for the newly increased registered capital of the co.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SC’s registered business scope includes manufacturing, processing and selling mobile phone and parts, hardware parts and computer parts; import and export of goods and technologies (excluding the hazard chemicals).

 

SC is mainly engaged in processing and selling mobile phone parts.

 

Mr. Zhuang Yue is legal representative, chairman and general manager of SC at present.

 

SC is known to have approx. 5 employees at present.

 

SC is currently operating at the above stated address, and this address houses its operating office in Guangzhou. The detailed information of the premise is unspecified.

 

WEB SITE

EB SITE

http://www.gzmx8.com the website belongs to Guangzhou Mingxin Industrial Limited (Hong Kong) and SC. The design is professional and the content is well organized. At present it is in both Chinese and English versions.

 

Email: monkey@gzmx8.com 

 

 

KEY EVENTS/RECENT DEVELOPMENT

 

 

No significant events or changes were found during our checks with the local Administration for Industry and Commerce.

 

Subject passed the annual inspection of 2012 with Administration for Industry & Commerce.

 

Organization Code: 696927014

 

 

LITIGATION

 

 

For the past two years there is no record of litigation.

 

 

OWNERSHIP/MANAGEMENT

 

MAIN SHAREHOLDERS:

 

Name                                                              % of Shareholding

 

Zhuang Ying                                                     20

 

Zhuang Yue                                                      80

 

 

MANAGEMENT

 

Legal representative, Chairman and General manager:

 

Mr. Zhuang Yue  is currently responsible for the overall management of SC.

 

Working Experience(s):

 

At present                     Working in SC as legal representative, chairman and general manager.

 

Supervisor:

Zhuang Ying

 

 

BUSINESS OPERATIONS

 

SC is mainly engaged in processing and selling mobile phone parts.

 

SC’s products mainly include: power bank, battery protection board, and so on.

 

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 Check, T/T, L/C and Credit of 30-60 days.

 

Note: SC’s management declined to release its customer and supplier details.

 

 

RELATED COMPANIES

 

Guangzhou Mingxin Industrial Limited (Hong Kong)

------------------------------

CR No.: 1700556

Date of Incorporation: 2012-1-18

Company Status: Private company limited by shares

Active Status: Live 

 

 

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 management declined to release its bank details.

 

 

FINANCIAL HIGHLIGHTS

 

Balance Sheet

Unit: CNY’000

 

as of Dec. 31, 2013

Cash & bank

420

Inventory

10

Accounts receivable

0

Advances to suppliers

0

Other receivables

0

Other current assets

10

 

------------------

Current assets

440

Fixed assets net value

0

Projects under construction

0

Long term investment

0

Other assets

0

 

------------------

Total assets

440

 

=============

Short loans

0

Accounts payable

0

Other payable

0

Taxes payable

0

Advances from clients

0

Other current liabilities

0

 

------------------

Current liabilities

0

Long term liabilities

0

 

------------------

Total liabilities

0

Equities

440

 

------------------

Total liabilities & equities

440

 

=============

 

 

Income Statement

Unit: CNY’000

 

as of Dec. 31, 2013

Turnover

110

Cost of goods sold

86

     Sales expense

2

     Management expense

36

     Finance expense

0

Profit before tax

-11

Less: profit tax

2

Profits

-13

 

Note: The above financial have not been audited.

 

Important Ratios

=============

 

as of Dec. 31, 2013

*Current ratio

/

*Quick ratio

/

*Liabilities to assets

/

*Net profit margin (%)

-11.82

*Return on total assets (%)

-2.95

*Inventory /Turnover ×365

34 days

*Accounts receivable/Turnover ×365

/

*Turnover/Total assets

0.25

* Cost of goods sold/Turnover

0.78

 

 

FINANCIAL COMMENTS

 

PROFITABILITY: FAIR

The turnover of SC appears fair in its line.

SC’s net profit margin is poor.

SC’s return on total assets is fair.

SC’s cost of goods sold is average, comparing with its turnover.

 

LIQUIDITY: AVERAGE

The inventory of SC is maintained in an average level.

SC has no accounts receivable in 2013.

SC has no short-term loan in 2013.

SC’s turnover is in a fair level, comparing with the size of its total assets.

 

LEVERAGE: AVERAGE

The risk for SC to go bankrupt is average.

 

Overall financial condition of the SC: Fair.

 

 

REMARKS

 

SC is considered small-sized in its line with fair financial conditions. Credit dealings with SC should be confined into C.O.D. at present.

 

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.14

UK Pound

1

Rs.94.79

Euro

1

Rs.70.38

 

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

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%)

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.