MIRA INFORM REPORT
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Report No. : |
302228 |
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Report Date : |
08.01.2015 |
IDENTIFICATION DETAILS
|
Name : |
EDAN INSTRUMENTS
INC. |
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|
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Registered Office : |
3/F-B, Nanshan Medical Equipments Park, No. 1019 Nanhai Rd., Shekou Nanshan District, Shenzhen, Guangdong Province 518067 Pr |
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Country : |
China |
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Financials (as on) : |
30.09.2014 (Consolidated) |
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Date of Incorporation : |
02.08.1995 |
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Com. Reg. No.: |
440301501133163 |
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Legal Form : |
Shares Limited Company |
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|
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Line of Business : |
Manufacturing
and Selling of Medical Equipment’s. |
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|
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No. of Employees : |
1,229 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Good |
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Payment Behaviour : |
No Complaints |
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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 – September 30, 2014
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
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Very High |
C1 |
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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
EDAN INSTRUMENTS INC.
3/F-B, NANSHAN MEDICAL
EQUIPMENTS PARK, NO. 1019 NANHAI RD., SHEKOU NANSHAN DISTRICT, SHENZHEN,
GUANGDONG PROVINCE 518067 PR CHINA
TEL: 86 (0)
755-26882220
FAX: 86 (0)
755-26898330/26882333
EXECUTIVE
SUMMARY
Date of Registration : AUGUST 2, 1995
REGISTRATION NO. : 440301501133163
LEGAL FORM : Shares limited coMPANY
REGISTERED CAPITAL : cny
195,000,000
staff : 1,229
BUSINESS CATEGORY :
manufacturing & TRADING
REVENUE : CNY 370,003,000
(From Jan. 1, 2014 to Sep. 30, 2014)
EQUITIES : CNY
1,161,159,000 (As of Sep. 30, 2014)
WEBSITE : www.edan-instruments.com
E-MAIL : info@edan.com.cn
PAYMENT : nO COMPLAINTS
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY GOOD
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : FAIRLY GOOD
EXCHANGE RATE : CNY 6.21 = 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.: 440301501133163.
SC’s Organization Code Certificate No.:
19236720-1
SC’s Tax No.: 440301192367201
SC’s Customs Registration No.: 4403160115
SC’s registered capital: cny 195,000,000
SC’s paid-in capital: cny 195,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2006-5-12 |
Registered Capital |
CNY 5,000,000 |
CNY 10,000,000 |
|
2008-11-14 |
Registered Capital |
CNY 10,000,000 |
CNY 50,626,500 |
|
Legal Form |
Limited
Liabilities Company |
Chinese-Foreign
Equity Joint Venture Enterprise |
|
|
Registration No. |
4403012077991 |
440301501133163 |
|
|
2009-12-30 |
Registered Capital |
CNY 50,626,500 |
CNY 53,256,632 |
|
2010-3-30 |
Registered Capital |
CNY 53,256,632 |
CNY 75,000,000 |
|
Legal Form |
Chinese-Foreign
Equity Joint Venture Enterprise |
Shares Limited Company |
|
|
2011-5-18 |
Registered Capital |
CNY 75,000,000 |
CNY 100,000,000 |
|
2013-10-16 |
Registered Capital |
CNY 100,000,000 |
cny 130,000,000 |
|
2014 |
Registered Capital |
cny 130,000,000 |
cny 195,000,000 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) (As of September
30, 2014) |
% of Shareholding |
|
Zhang Hao |
20.86 |
|
Zu Youdong |
17.88 |
|
Xie Xicheng |
17.02 |
|
Industrial and Commercial Bank of China-E
Fund Value Growth Mixed Securities Investment Fund |
3.04 |
|
GF Securities - GF Collective Asset Management
Plan (3) |
1.98 |
|
Industrial and Commercial Bank of China-Baoyingfan
Coastal Areas Growth Equity Securities Investment Fund |
1.51 |
|
China Construction Bank-Galaxy Industry
Preferred Stock Securities Investment Fund |
1.13 |
|
Industrial and Commercial Bank of China-South
Excellent Growth Stock Investment Fund |
1.03 |
|
Taikang Life Insurance Co.,
Ltd.-Dividend-Individual Dividend |
1.02 |
|
China Everbright Bank Co., Ltd.-Taixin
Xianxing Strategies Open Securities Investment Fund |
0.94 |
|
Other
Shareholders |
33.59 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal
Representative, Chairman and General Manager |
Zhang Hao |
|
Deputy
General Manager |
Zu Youdong |
|
Xie Xicheng |
RECENT
DEVELOPMENT
SC is a listed company in Shenzhen Stock Exchange Market with the code
of 300206.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
(As of September 30, 2014)
----------------------------------
Zhang Hao 20.86
Zu Youdong 17.88
Xie Xicheng 17.02
Industrial and Commercial Bank of China-E
Fund Value Growth Mixed
Securities Investment Fund 3.04
GF Securities - GF collective asset management plan (3) 1.98
Industrial and Commercial Bank of
China-Baoyingfan Coastal areas
Growth Equity Securities Investment Fund 1.51
China Construction Bank-Galaxy Industry
Preferred Stock Securities
Investment Fund 1.13
Industrial and Commercial Bank of
China-South Excellent
Growth Stock Investment Fund 1.03
Taikang Life Insurance Co.,
Ltd.-Dividend-Individual Dividend
Shenzhen 1.02
China Everbright Bank Co., Ltd.-Taixin
Xianxing Strategies Open Securities
Investment Fund 0.94
Other Shareholders 33.59
MANAGEMENT
Zhang Hao, Legal Representative, Chairman and General
Manager
------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 51
Ø Qualification: Master
Degree
Ø Working experience
(s):
At present, working in SC as legal representative,
chairman and general manager
Zu
Youdong, Deputy General Manager
--------------------------------------------------------------
Ø
Gender: M
Ø
Age: 53
Ø Qualification: Master
Degree
Ø Working experience
(s):
From 2010 to present, working in SC as deputy
general manager
Xie
Xicheng, Deputy General Manager
--------------------------------------------------------------
Ø
Gender: M
Ø
Age: 50
Ø Qualification: Master
Degree
Ø Working experience
(s):
From 2010 to present, working in SC as deputy
general manager
BUSINESS
OPERATION
SC’s registered business scope includes wholesale, import & export
and related business of electronics, instrumentation, telecommunication
products, three types of medical ultrasound equipment and related equipment,
medical X-ray equipment, clinical tests and analysis instrument, medical
electronic instruments and equipment(according to related regulations);
computer software development, production, wholesale, import and export and
related ancillary businesses; manufacturing, operating three types of medical
ultrasound equipment, medical electronic instruments and equipment(with permit
if needed).
SC
is mainly engaged in manufacturing and selling medical equipments.
SC’s products mainly include: fetal
monitoring, ECG, patient monitoring, vascular assessment, ultrasound scanner,
veterinary, accessories, etc.
SC sources its materials 60% from domestic market and 40% from overseas
market. SC sells 30% of its products in domestic market and 70% 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 Customers*
----------------------
Pengbang Medical (HK) Co., Limited
Raine Industries Inc.
Spacelabs Medical, Inc.
Staff & Office:
--------------------------
SC is known
to have approx. 1,229 staff
at present.
SC owns an area as
its operating office and factory, but the detailed information is unknown.
RELATED
COMPANY
SC is known to have 9
subsidiaries at present, and the following are the major ones.
n
Xi’an Edan Instruments Co., Ltd.
n
Edan Technology (HK) Co., Limited
n
Pengbang Medical (HK) Co., Limited
n
Edan Medical (India) Co., Ltd.
n
Edan Medical Diagnosis Technology Co., Ltd.
n
Shenzhen Edan Bio-electric Co. Ltd.
Etc.
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
Basic Bank:
Bank of China Shenzhen Branch
AC#:
812500172508092014
FINANCIALS
Consolidated Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2013 |
As of Sep. 30, 2014 |
|
924,435 |
807,728 |
|
|
Notes receivable |
0 |
0 |
|
Accounts receivable |
19,863 |
26,444 |
|
Advances to suppliers |
12,885 |
28,652 |
|
Interest receivable |
17,625 |
9,471 |
|
Other receivable |
14,226 |
17,790 |
|
Inventory |
60,838 |
76,594 |
|
Non-current assets within one year |
0 |
0 |
|
Other current assets |
0 |
71,001 |
|
|
------------------ |
------------------ |
|
Current assets |
1,049,872 |
1,037,680 |
|
Long-term equity investment |
13,234 |
10,878 |
|
Fixed assets |
37,697 |
40,980 |
|
Construction in progress |
108,408 |
165,743 |
|
Engineering materials |
0 |
0 |
|
Intangible assets |
56,839 |
54,014 |
|
Development expenditure |
0 |
0 |
|
Goodwill |
4,387 |
4,387 |
|
Long-term prepaid expenses |
1,437 |
440 |
|
Deferred income tax assets |
480 |
595 |
|
Other non-current assets |
0 |
2,967 |
|
|
------------------ |
------------------ |
|
Total assets |
1,272,354 |
1,317,684 |
|
|
============= |
============= |
|
Short-term loans |
0 |
0 |
|
Notes payable |
52 |
0 |
|
Accounts payable |
27,098 |
33,084 |
|
Advances from clients |
15,008 |
17,476 |
|
Payroll payable |
4,409 |
1,307 |
|
Tax payable |
1,337 |
1,960 |
|
Interest payable |
0 |
0 |
|
Dividends payable |
0 |
0 |
|
Other payable |
6,510 |
7,094 |
|
Other current liabilities |
9,056 |
2,241 |
|
|
------------------ |
------------------ |
|
Current liabilities |
63,470 |
63,162 |
|
Non-current liabilities |
29,113 |
93,363 |
|
|
------------------ |
------------------ |
|
Total liabilities |
92,583 |
156,525 |
|
Equities |
1,179,771 |
1,161,159 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
1,272,354 |
1,317,684 |
|
|
============= |
============= |
Consolidated Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2013 |
From Jan. 1, 2014 to Sep. 30, 2014 |
|
Revenue |
454,607 |
370,003 |
|
Cost of
sales |
196,961 |
165,044 |
|
Taxes and
surcharges |
4,951 |
3,852 |
|
Sales expense |
96,421 |
83,334 |
|
Management expense |
160,147 |
140,165 |
|
Finance expense |
-22,185 |
-19,165 |
|
Investment income |
-3,254 |
-3,187 |
|
Non-operating income |
19,329 |
16,035 |
|
Non-operating expense |
113 |
1,121 |
|
Profit before tax |
33,654 |
9,365 |
|
Less: profit tax |
402 |
-590 |
|
Profits |
33,252 |
9,955 |
Important Ratios
=============
|
|
As of Dec. 31, 2013 |
As of Sep. 30, 2014 |
|
*Current ratio |
16.54 |
16.43 |
|
*Quick ratio |
15.58 |
15.22 |
|
*Liabilities to assets |
0.07 |
0.12 |
|
*Net profit margin (%) |
7.31 |
2.69 |
|
*Return on total assets (%) |
2.61 |
0.76 |
|
*Inventory / Revenue ×365/270 |
49 days |
56 days |
|
*Accounts receivable / Revenue ×365/270 |
16 days |
20 days |
|
*Revenue / Total assets |
0.36 |
0.28 |
|
*Cost of sales / Revenue |
0.43 |
0.45 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIRLY GOOD
l The revenue of SC
appears fairly good in its line.
l SC’s net profit
margin is average.
l SC’s return on
total assets is average.
l
SC’s cost of sales is low, comparing with its
revenue.
LIQUIDITY: FAIRLY
GOOD
l
The current ratio of SC is maintained in a fairly
good 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 is maintained in an
average level.
l
SC has no short-term loans.
l
SC’s revenue is in a fair level, comparing with the
size of its total assets.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly Good.
CONCLUSIONS
SC is considered large-sized in its line with fairly good financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.45 |
|
|
1 |
Rs.95.99 |
|
Euro |
1 |
Rs.75.28 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
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.