MIRA INFORM REPORT
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Report No. : |
330193 |
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Report Date : |
03.07.2015 |
IDENTIFICATION DETAILS
|
Name : |
HUZHOU NANYANG
ELECTRIC MOTOR CO., LTD. |
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Registered Office : |
Nianfeng Road, Nanxun Industrial Park, Huzhou City Zhejiang Province 313009 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
25.07.2001 |
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Com. Reg. No.: |
330500400008120 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
Manufacturing and Selling of Electric Motor. |
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No. of Employees : |
240 |
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 : |
Satisfactory |
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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 |
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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.
|
Source
: CIA |
Company
name and address
HUZHOU NANYANG ELECTRIC MOTOR CO., LTD.
NIANFENG ROAD, NANXUN
INDUSTRIAL PARK, HUZHOU CITY
ZHEJIANG PROVINCE
313009 PR CHINA
TEL: 86 (0) 572-3033680/3033686/3033678
FAX: 86 (0)
572-3033838
EXECUTIVE
SUMMARY
Date of Registration : JULY 25, 2001
REGISTRATION NO. : 330500400008120
LEGAL FORM : CHINESE-FOREIGN
EQUITY JOINT VENTURE ENTERPRISE
REGISTERED CAPITAL : USD 9,260,000
staff : 240
BUSINESS CATEGORY : MANUFACTURING & TRADING
Revenue : CNY 317,280,000 (AS OF DEC. 31, 2014)
EQUITIES : CNY 119,530,000 (AS OF DEC. 31, 2014)
WEBSITE : www.zjnanyang.com.cn
E-MAIL : info@zjnanyang.com.cn
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND :
fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.25 = 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.: 330500400008120 on July 25, 2001.
SC’s Organization Code Certificate No.:
73031632-2
SC’s Tax No.: 330501730316322
SC’s registered capital: USD 9,260,000
SC’s paid-in capital: USD 9,260,000 (CNY
68,673,486.59)
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2006-03-07 |
Registered Capital |
USD 1,260,000 |
USD 6,860,000 |
|
% of Shareholding |
Li Liancai 25% Shen Enrong 35% Shen Zhixing 40% |
Li Liancai 44.53% Shen Enrong 6.43% Shen Zhixing 49.04% |
|
|
2006-08-24 |
Registered Capital |
USD 6,860,000 |
USD 9,260,000 |
|
% of Shareholding |
Li Liancai 44.53% Shen Enrong 6.43% Shen Zhixing 49.04% |
Li Liancai 48.0022% Shen Enrong 4.7624% Shen Zhixing 47.2354% |
|
|
2008-07-23 |
Registered
No. |
000814 |
330500400008120 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Li Liancai (Taiwan) |
48.0022 |
|
Shen Zhixing |
47.2354 |
|
Shen Enrong |
4.7624 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal
Representative and Chairman |
Shen Zhixing |
|
Director |
Li Liancai |
|
Shen Enrong |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Li Liancai (Taiwan)
Passport # 0098298902(B) 48.0022
Shen Zhixing
ID# 330511500805201 47.2354
Shen Enrong
ID# 330511671018201 4.7624
MANAGEMENT
Shen Zhixing, Legal Representative and Chairman
-----------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 65
Ø Qualification:
University
Ø Working experience
(s):
From 2001 to present, working in SC as
legal representative and chairman
Director
-----------
Li Liancai Passport # 0098298902(B)
Shen Enrong
BUSINESS
OPERATION
SC’s registered business scope includes manufacturing of
home appliance electric motor, home appliance a products; Selling of self-made
products.
SC
is mainly engaged in manufacturing and selling electric motor.
Brand: XM
SC’s products
mainly include: washing machine motor, tubular motor, components, enameled
wires, and etc.
SC sources its materials 100% from domestic market. SC sells 50% of its products in domestic market, and 50% to overseas market, mainly Europe, America and Southeast Asia.
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.
*Major Customers:
==============
Shaver Industries
Inc.
Empire Home
Appliances Ltd.
Staff & Office:
--------------------------
SC is known
to have approx. 240 staff at
present.
SC owns an area as
its operating office & factory of approx. 48,000 sq. meters at the heading
address.
RELATED
COMPANY
SC is known to have 2
subsidiaries at present.
n
Huzhou Tianyang Cable Co., Ltd.
-----------------------------
Date of Registration: April 24, 2011
Registration No.: 330504000037816
Registered Capital: CNY 5,000,000
n
Huzhou Jinma Real Estate Development Co., Ltd.
---------------------------------------
Date of Registration: June 27, 2002
Registration No.: 330500400003818
Registered Capital: CNY 31,400,000
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:
China Construction Bank Huzhou Nanxun District Sub-Branch
AC#:
33001648735050000423
Industrial and
Commercial Bank of China
AC#:
1205240019200019828
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
|
20,801 |
27,951 |
18,770 |
|
|
Notes receivable |
735 |
5,589 |
24,470 |
|
Accounts receivable |
96,839 |
135,749 |
125,220 |
|
Advances to suppliers |
5,915 |
9,267 |
1,260 |
|
Other receivable |
72,444 |
61,093 |
48,970 |
|
Inventory |
17,692 |
26,998 |
39,800 |
|
Non-current assets within one year |
0 |
0 |
0 |
|
Other current assets |
102 |
5 |
0 |
|
|
------------------ |
------------------ |
------------------ |
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Current assets |
214,528 |
266,652 |
258,490 |
|
Fixed assets |
46,741 |
61,715 |
51,610 |
|
Construction in progress |
1,241 |
227 |
14,260 |
|
Intangible assets |
24,505 |
23,906 |
23,309 |
|
Long-term prepaid expenses |
0 |
0 |
0 |
|
Deferred income tax assets |
0 |
0 |
0 |
|
Other non-current assets |
1,201 |
1,201 |
1,201 |
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|
------------------ |
------------------ |
------------------ |
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Total assets |
288,216 |
353,701 |
348,870 |
|
|
============= |
============= |
============= |
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Short-term loans |
100,757 |
45,241 |
73,430 |
|
Notes payable |
34,543 |
60,387 |
53,420 |
|
Accounts payable |
41,419 |
68,647 |
51,620 |
|
Wages payable |
0 |
0 |
0 |
|
Taxes payable |
-160 |
-861 |
-3,020 |
|
Advances from clients |
1,655 |
4,181 |
0 |
|
Other payable |
11,731 |
66,346 |
53,890 |
|
Other current liabilities |
177 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Current liabilities |
190,122 |
243,941 |
229,340 |
|
Non-current liabilities |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Total liabilities |
190,122 |
243,941 |
229,340 |
|
Equities |
98,094 |
109,760 |
119,530 |
|
|
------------------ |
------------------ |
------------------ |
|
Total liabilities & equities |
288,216 |
353,701 |
348,870 |
|
|
============= |
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
|
Revenue |
267,111 |
377,294 |
317,280 |
|
Cost of sales |
224,322 |
324,907 |
273,510 |
|
Taxes and surcharges |
530 |
746 |
800 |
|
Sales expense |
9,937 |
15,873 |
12,380 |
|
Management expense |
19,870 |
21,883 |
26,410 |
|
Finance expense |
6,989 |
1,824 |
1,920 |
|
Non-business income |
1,589 |
1,641 |
1,580 |
|
Non-business expenditure |
187 |
43 |
67 |
|
Profit before tax |
17,814 |
13,374 |
11,830 |
|
Less: profit tax |
1,059 |
1,708 |
1,940 |
|
16,755 |
11,666 |
9,890 |
Important Ratios
=============
|
|
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
|
*Current ratio |
1.13 |
1.09 |
1.13 |
|
*Quick ratio |
1.04 |
0.98 |
0.95 |
|
*Liabilities to assets |
0.66 |
0.69 |
0.66 |
|
*Net profit margin (%) |
6.27 |
3.09 |
3.12 |
|
*Return on total assets (%) |
5.81 |
3.30 |
2.83 |
|
*Inventory / Revenue ×365 |
25 days |
27 days |
46 days |
|
*Accounts receivable / Revenue ×365 |
133 days |
132 days |
145 days |
|
*Revenue / Total assets |
0.93 |
1.07 |
0.91 |
|
*Cost of sales / Revenue |
0.84 |
0.86 |
0.86 |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
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 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 normal level.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC appears large.
l
SC’s short-term loans are in an average level.
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 average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable financial
conditions. The large amount of accounts receivable may be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.57 |
|
|
1 |
Rs.99.20 |
|
Euro |
1 |
Rs.70.35 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
DPT |
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.