MIRA
INFORM REPORT
|
Report No. : |
305222 |
|
Report Date : |
29.01.2015 |
IDENTIFICATION DETAILS
|
Name : |
GALANZ (ZHONGSHAN) ELECTRICAL APPLIANCES LTD. |
|
|
|
|
Registered Office : |
No. 3 East Xingpu Road, Huangpu Town, Zhongshan Guangdong Province
528429 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
02.02.2005 |
|
|
|
|
Com. Reg. No.: |
442000400004130 |
|
|
|
|
Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
|
|
|
|
Line of Business : |
Manufacturing and selling household appliance, commercial
air-conditioning, hardware electrical accessories, plastic parts, heat pump
water heater; providing after-sales service for its owned products (with
permit if needed); wholesale, importing and exporting mould (with permit if
needed) |
|
|
|
|
No. of Employee : |
6,000 |
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 |
|
Payment Behaviour : |
Regular |
|
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 |
|
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 & address
GALANZ (ZHONGSHAN) ELECTRICAL APPLIANCES LTD.
NO. 3 EAST XINGPU ROAD, HUANGPU TOWN, ZHONGSHAN GUANGDONG PROVINCE
528429 PR CHINA
TEL: 86 (0) 760-23306389/23305877
FAX: 86 (0) 760-23306979/23306736
EXECUTIVE SUMMARY
Date of Registration : february 2, 2005
REGISTRATION NO. : 442000400004130
LEGAL FORM : CHINESE-FOREIGN
EQUITY JOINT VENTURE ENTERPRISE
CHIEF EXECUTIVE :
liang qingde (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY
600,000,000
staff :
6,000
BUSINESS CATEGORY :
manufacturing & trading
Revenue :
CNY 2,902,990,000 (AS OF DEC. 31, 2013)
EQUITIES :
CNY 1,056,930,000 (AS OF DEC. 31, 2013)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : 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 Chinese-foreign equity joint venture enterprise
of PRC with State Administration of Industry & Commerce (SAIC) under
registration No.: 442000400004130
on February 2, 2005.
SC’s Organization Code Certificate No.:
77098632-0
%20ELECTRICAL%20APPLIANCES%20LTD%20%20-%20305222%2029-Jan-2015_files/image011.jpg)
SC’s Tax No.: 442000770986320
SC’s Customs Registration No.: 4420932808
SC’s registered capital: CNY 600,000,000
SC’s paid-in capital: CNY 600,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2007-08-10 |
Registered No. |
003889 |
442000400004130 |
|
2007-11-22 |
Registered Capital |
CNY 400,000,000 |
CNY 600,000,000 |
|
Shareholder (s) (% of Shareholding) |
Glanz (Zhongshan) Electric Equipment Co., Ltd. 67.5% 45% Winsparkle International Corporation Ltd. (Bahamas) 26.06% 13.04% Plan Develop Limited (Bahamas) 11.96% 23.94% Foshan Shunde District Glanz Electric Appliances Industry Co., Ltd.
6.75% 4.5% Guangdong Glanz Group Co., Ltd. 0.75% 0.5% |
Galanz (Zhongshan) Electrical Equipment Co., Ltd. 45% Winsparkle International Corporation Ltd. (Bahamas) 26.06% Plan Develop Limited (Bahamas) 23.94% Foshan Shunde District Glanz Electric Appliances Industry Co., Ltd.
4.5% Guangdong Galanz Group Co., Ltd. 0.5% |
|
|
2010-1-27 |
Shareholder (s) (% of Shareholding) |
Galanz (Zhongshan) Electrical Equipment Co., Ltd. 45% Winsparkle International Corporation Ltd. (Bahamas) 26.06% Plan Develop Limited (Bahamas) 23.94% Foshan Shunde District Glanz Electric Appliances Industry Co., Ltd.
4.5% Guangdong Galanz Group Co., Ltd. 0.5% |
Goldpearl International Investments Limited (Hong Kong) 50% Galanz (Zhongshan) Electrical Equipment Co., Ltd. 45% Guangdong Galanz Group Co., Ltd. 5% |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Goldpearl International Investments Limited (Hong Kong) |
50 |
|
Galanz (Zhongshan) Electrical Equipment Co., Ltd. |
45 |
|
Guangdong Galanz Group Co., Ltd. |
5 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman and General Manager |
Liang Qingde |
|
Deputy General Manager |
Liang Zhaoxian |
|
Director |
Zou Nengji |
|
Liang Yuyuan |
|
|
Supervisor |
Liang Yuqiong |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Goldpearl International Investments Limited (Hong Kong) 50
Galanz (Zhongshan) Electrical Equipment Co., Ltd. 45
Guangdong Galanz Group Co., Ltd.
5
Goldpearl International Investments Limited (Hong Kong)
=============================================
Registration No.: 1024823
Date of Registration: February 17, 2006
Legal Form: Private
Status: Live
Galanz (Zhongshan) Electrical Equipment Co., Ltd.
========================================
Date of Registration: November 25, 2005
Registration No.: 442000400024297
Legal Representative: Liang Qingde
Registered Capital: CNY 10,000,000
Address: No.3, East Xingpu Avenue, Huangpu Town, Zhongshan City,
Guangdong province, China.
Postal Code: 528429
Tel: 86-760-23306389
Fax: 86-760-23309628
Guangdong Galanz Group Co., Ltd.
=============================
Date of Registration: April 3, 2003
Registration No.: 440681400014337
Legal Representative: Liang Qingde
Registered Capital: CNY 88,216,200
Guangdong Glanz Group Co., Ltd. is a global, professional home appliance
manufacturer.
Since Galanz found in 1978, it has been developing healthily,
continuously, and rapidly for 27 year. Orienting as Global Famous-Brand Home
Appliance Manufacturing Center, more than 20,000 Galanz people commit
themselves to develop three manufacturing bases: Global Microwave Oven
Manufacturing Center, Global Air-con Manufacturing Center and Global Small Home
Appliance Center, keep being the global No.1 of microwave oven and light-wave
oven manufacture, and become one of the top-ranking brands in the world. Her
products are hot sales in about 200 countries and regions, the annual sale
volume reaches 13 billions CNY and the profit of foreign exchange is 700
million USD.
Website: www.galanz.com.cn
E-mail: info@galanz.com.cn
Address (Shunde): No.25, South Ronggui Avenue, Shunde District, Foshan
City, Guangdong Province, China
Tel: 86-757-28886389
Fax: 86-757-28889628
MANAGEMENT
Liang Qingde , Legal Representative, Chairman and General
Manager
------------------------------------------------------------------------------------------------------
%20ELECTRICAL%20APPLIANCES%20LTD%20%20-%20305222%2029-Jan-2015_files/image012.jpg)
Gender: M
Age: 79
ID# 440623360429591
Qualification: University
Working experience (s):
From 2005 to present, working in SC as legal representative, chairman
and general manager
Also working in Galanz (Zhongshan) Electrical Equipment Co., Ltd. and
Guangdong Galanz Group Co., Ltd. as legal representative
Liang Zhaoxian,
Deputy General Manager
-------------------------------------------------------------------
Gender: M
Age: 50
Qualification: University
Working experience (s):
At present, working in SC as deputy general manager
Also working in Foshan Shunde Galanz Microwave Oven Electrical Appliance
Co., Ltd. as legal representative
Director
-----------
Zou Nengji
Liang Yuyuan
Supervisor
--------------
Liang Yuqiong
BUSINESS OPERATION
SC’s registered business scope includes manufacturing and selling
household appliance, commercial air-conditioning, hardware electrical
accessories, plastic parts, heat pump water heater; providing after-sales
service for its owned products (with permit if needed); wholesale, importing
and exporting mould (with permit if needed)
SC is mainly engaged in manufacturing and selling household appliance.
Brand: galanz
SC’s products mainly include: household appliance, suck as microwave
ovens, air conditioner, induction cookers, washing machine, electric kettles,
rice cookers, refrigerator, wine cooler, and oven.
%20ELECTRICAL%20APPLIANCES%20LTD%20%20-%20305222%2029-Jan-2015_files/image013.jpg)
SC sources its materials 95% from domestic market, and 5% from overseas
market, mainly Hong Kong. SC sells 26% of its products in domestic market, and 74%
to overseas market, mainly U.S.A., Europe and Southeast Asian 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.
*Major Customers:
==============
York International
Guangdong Galanz Electronic
Sales Co., Ltd.
Electrolux Kelvinator Limited
Daewoo International
Gome Electric Appliances Co., Ltd.
*Major Suppliers:
==============
galanz (Zhongshan) Electric Motor Manufacturing Co., Ltd.
Shunde galanz
Electronic Component
Manufacturing Co., Ltd.
(Hong Kong) General Bonus Limited
Staff &
Office:
--------------------------
SC is known to have approx.
6,000 staff at present.
SC owns an area as its operating office & factory of approx. 1,700,000
sq. meters at the heading address.
RELATED COMPANY
Guangdong Galanz Microwave Oven & Electrical Appliances
Manufacturing Co., Ltd.
Guangdong Galanz Electronic
Sales Co., Ltd.
Foshan Shunde Galanz Microwave Oven Electrical
Appliance Co., Ltd.
Zhongshan Galanz Home Appliances Sales Co., Ltd.
Zhongshan Galanz Household Appliances Co., Ltd.
SC is known to
have 3 subsidiaries at present,
Guangdong Galanz Electrical Appliances Sales Co., Ltd.
Zhongshan Galanz Household Electrical Appliances Co., Ltd.
Zhongshan Galanz Industrial & Trade 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
Basic Bank:
Bank of China Zhongshan Huangpu Sub-branch
AC#: 829552498908091001
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
70,900 |
112,875 |
|
|
Notes receivable |
6,350 |
100 |
|
Accounts receivable |
1,006,974 |
662,760 |
|
Advances to suppliers |
7,590 |
3,071 |
|
Other receivable |
282,834 |
47,949 |
|
Inventory |
390,965 |
314,441 |
|
Deferred expenses |
0 |
0 |
|
Other current assets |
23,447 |
20,031 |
|
|
------------------ |
------------------ |
|
Current assets |
1,789,060 |
1,161,227 |
|
Long-term investment |
156,000 |
156,000 |
|
Fixed assets |
423,623 |
374,000 |
|
Construction in progress |
358,453 |
370,289 |
|
Intangible assets |
180,558 |
176,424 |
|
Long-term prepaid expenses |
0 |
0 |
|
Deferred income tax assets |
0 |
0 |
|
Other non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
2,907,694 |
2,237,940 |
|
|
============= |
============= |
|
Short-term loans |
216,300 |
4,400 |
|
Notes payable |
0 |
80,178 |
|
Accounts payable |
1,633,577 |
1,027,044 |
|
Wages payable |
9,635 |
14,097 |
|
Dividends payable |
-13,351 |
-13,351 |
|
Taxes payable |
-49,495 |
-28,573 |
|
Advances from clients |
116,049 |
101,762 |
|
Other payable |
10,894 |
0 |
|
Other current liabilities |
13,084 |
9,564 |
|
|
------------------ |
------------------ |
|
Current liabilities |
1,936,693 |
1,195,121 |
|
Non-current liabilities |
90,000 |
88,500 |
|
|
------------------ |
------------------ |
|
Total liabilities |
2,026,693 |
1,283,621 |
|
Equities |
881,001 |
954,319 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
2,907,694 |
2,237,940 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
Revenue |
4,757,331 |
2,642,700 |
|
Cost of sales |
4,358,864 |
2,332,618 |
|
Taxes and surcharges |
5,927 |
5,713 |
|
Sales expense |
55,214 |
39,274 |
|
Management expense |
230,741 |
181,281 |
|
Finance expense |
69,857 |
27,853 |
|
Non-operating income |
15,212 |
2,345 |
|
Non-operating expense |
2,089 |
7,540 |
|
Profit before tax |
49,851 |
83,249 |
|
Less: profit tax |
9,721 |
13,396 |
|
40,130 |
69,853 |
Financial Summary
|
Unit: CNY’000 |
As of Dec. 31,
2013 |
|
Total assets |
2,340,800 |
|
|
------------- |
|
Total liabilities |
1,283,870 |
|
Equities |
1,056,930 |
|
|
------------- |
|
Revenue |
2,902,990 |
|
Cost of sales |
2,814,540 |
|
Profits |
69,850 |
Important Ratios
=============
|
|
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
|
*Current ratio |
0.92 |
0.97 |
-- |
|
*Quick ratio |
0.72 |
0.71 |
-- |
|
*Liabilities to assets |
0.70 |
0.57 |
0.55 |
|
*Net profit margin (%) |
0.84 |
2.64 |
2.41 |
|
*Return on total assets (%) |
1.38 |
3.12 |
2.98 |
|
*Inventory / Revenue ×365 |
30 days |
44 days |
-- |
|
*Accounts receivable / Revenue ×365 |
78 days |
92 days |
-- |
|
*Revenue / Total assets |
1.64 |
1.18 |
1.24 |
|
*Cost of sales / Revenue |
0.92 |
0.88 |
0.97 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
The revenue of SC appears fairly good in its line.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a fair level.
SC’s quick ratio is maintained in a normal level.
The inventory of SC appears average.
The accounts receivable of SC appears large.
SC’s short-term loans appear small in 2012.
SC’s revenue is in an average level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Stable.
CONCLUSIONS
SC is considered large-sized in its line with stable financial
conditions. Taking into consideration of SC’s general performance, reputation
as well as market conditions,
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.41 |
|
|
1 |
Rs.93.18 |
|
Euro |
1 |
Rs.69.82 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
TPT |
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.