MIRA INFORM REPORT
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Report No. : |
329321 |
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Report Date : |
04.07.2015 |
IDENTIFICATION DETAILS
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Name : |
CHINA ELECTRONICS ZHUHAI CO., LTD. |
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Registered Office : |
6/F, Ceiec Building, No. 1082 Jiuzhou Avenue Central, Jida, Zhuhai City,
Guangdong Province, 519000 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
02.06.1987 |
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Com. Reg. No.: |
440400000039395 |
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Legal Form : |
Limited Liabilities Co. |
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Line of Business : |
Subject is engaged in selling household appliances |
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No. of Employee : |
49 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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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 – March 31, 2015
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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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. In 2014 the People’s Bank of China (PBOC) doubled 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 2014 stood as the largest economy in the world, surpassing the US that year... 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 2014 more than 274 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. In 2014 China agreed to begin limiting carbon dioxide emissions by 2030. China implemented several economic reforms in 2014, including passing legislation to allow local governments to issue bonds, opening several state-owned enterprises to further private investment, loosening the one-child policy, passing harsher pollution fines, and cutting administrative red tape.
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Source
: CIA |
Company
name and addrsss
CHINA
ELECTRONICS ZHUHAI CO., LTD.
6/F, CEIEC BUILDING, NO. 1082 JIUZHOU AVENUE CENTRAL, JIDA, ZHUHAI CITY,
GUANGDONG PROVINCE, 519000 PR CHINA
TEL: 86 (0) 756-3266840 FAX: 86 (0) 756-3368833
EXECUTIVE SUMMARY
INCORPORATION DATE :
JUNE 2, 1987
REGISTRATION NO. :
440400000039395
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
STAFF STRENGTH : 49
REGISTERED CAPITAL : CNY 25,900,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 873,920,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY 32,770,000 (AS OF DEC. 31, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.20=USD
Adopted abbreviations:
ANS - amount not stated NS
- not stated SC - subject company (the
company inquired by you)
NA - not available CNY – China Yuan Ren Min Bi
SC was registered as a limited liabilities co. at local
Administration for Industry & Commerce (AIC-The official body of issuing
and renewing business license).
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 self-support and agency 16 kinds of export goods except the national
organization of the united operation and goods and technology import and export
business except the countries are subject to verification business 14 kinds of
imported goods (according to the moftec [97] no. 1980 of moftec); in
compensation trade, transit trade, barter trade, counter trade business and the
lease item under the import and export, the foreign trade exhibition; storage
and transportation, packaging business, service and consignment sales and technical
consultation and technology services, and information service related to the
main business; self-owned property rental and management.
SC
is mainly engaged in selling household appliances.
Zhou
Hong has been legal representative and
general manager of SC since 2014.
SC is known
to have approx. 49 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Zhuhai. Our checks reveal that SC owns
the total premise, but SC’s accountant refused to release the gross area of the
premise.
http://www.ceiec-zhuhai.com/ The design is professional
and the content is well organized. At present it is in Chinese and English
versions.
Email: zhceiec@ceiec-zhuhai.com
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
Unknown |
Shareholders and shareholding |
China Electronics Shenzhen Co., Ltd.
72.46% Li Jinghe 7% Zhang Huihui 5% Wang Jianhua 5% Zhou Hong 5% Other 4 shareholders 5.54% |
Present ones |
|
2014-7 |
Legal representative |
Mr. Zhang Huihui |
Present one |
Honors:
======
SC’s services and products have been recognized with various
certifications, including “Recommend
export brand” issued by the China Chamber of Commerce for Import &
Export of Machinery & Electronic Products, “Honest example enterprise of Guangdong province”, “Foreign trade credit enterprise” and
ISO 9001: 2000.
Organization Code: 190341577
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name
% of
shareholdings
China Electronics Shenzhen Co., Ltd. 72.46
Zhang Huihui 6
Zhou Hong 6
Wang Jianhua 6
Su Futong 3.5
She Xiaoye 3
Song Yuexiang 1.14
Lu Qianjin 1
Luan Yanli 0.9
China Electronics Shenzhen Co., Ltd.
===========================
China Electronics Shenzhen Co., Ltd. is mainly engaged in international
trade, investment and management of its subsidiaries.
As an advanced enterprise of national foreign economy and trade, quality
and benefit, the company has ranked the 43rd position in the 100 top exported
state-owned enterprises in China, the 235th position in the 500 top Chinese
services enterprises and the 49th position in the 100 top Shenzhen enterprises.
It is an enterprise with AAA bank credit rating and a provincial and municipal
civilization unit for many years. It takes the lead in the electronics industry
association, import and export industry and related industry associations, and
it is a membership unit of Shenzhen Chamber of Commerce for Import& Export.
Incorporation date: May 19, 1982
Registration no.: 440000000029684
Registered capital: CNY 175,000,000
Legal rep.: Chen Xu
Legal form: Shares limited co.
Web: http://www.ceiecsz.com.cn
E-mail: ceiecsz@ceiecsz.com.cn
Add: 36/F, 35/F, Block A, Electronic Science
& Technology Building, No. 2070 Shennan Middle Road, Shenzhen, Guangdong
Province
Tel: 86 (0)755-83783800
Fax: 86 (0)755-83350221
l Chairman:
Mr. Li Jinghe is currently responsible for the overall
management of SC
Working Experience(s):
At present Working in SC as chairman
l General Manager
& Legal Representative:
Zhou Hong is currently responsible for the daily
management of SC
Working Experience(s):
From 2014 to
present Working in SC as general manager
& legal representative
Also working in Zhuhai Free Trade Zone CEIEC
Warehousing Co., Ltd., Zhuhai Economic Zone Cet Enterprise Company and
Zhongshan CEIEC Property Management Co., Ltd. as legal representative.
l Supervisors:
Xiao Yuan
Luan Yanli
SC
is mainly engaged in selling household appliances.
SC’s products mainly
include: air cooler, heater, electric fan, TV, mini component, etc.
SC sources its materials 90% from domestic
market, and 10% from overseas market. SC sells 100% of its products to overseas
market, mainly Europe 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, 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. |
6158148 |
6179999 |
6255155 |
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Registration Date |
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Trademark Design |
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SC is known to invest in the following companies:
Zhuhai CEIEC Hi-tech Industry Investment Co., Ltd.
Incorporation date:
Registration no.: 440400000058531
Registered capital: CNY 50,000,000
Legal rep.: Xiang Qunxiong
Legal form: Limited liabilities co.
Zhuhai Free Trade Zone CEIEC Warehousing Co., Ltd.
Incorporation date:
Registration no.: 440400000228439
Registered capital: CNY 500,000
Legal rep.: Zhou Hong
Legal form: Limited liabilities co.
Zhuhai Economic Zone Cet Enterprise Company
Incorporation date:
Registration no.: 440400000396450
Registered capital: CNY 3,000,000
Legal rep.: Zhou Hong
Zhongshan CEIEC Property Management Co., Ltd.
Incorporation date:
Registration no.: 442000000148495
Registered capital: CNY 500,000
Legal rep.: Zhou Hong
Legal form: Limited liabilities co.
Guangdong AF Technology Corp., Ltd.
Incorporation date:
Registration no.: 440000000026918
Registered capital: CNY 105,000,000
Legal rep.: You Jingyu
Legal form: Shares limited co.
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.
Bank of China
Zhuhai Branch
AC#:
699057736068
Relationship:
Normal
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2014 |
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Cash & bank |
28,370 |
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Inventory |
0 |
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Accounts
receivable |
157,790 |
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Other
receivables |
42,790 |
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Other current
assets |
14,170 |
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------------------ |
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Current assets |
243,120 |
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Fixed assets net
value |
3,970 |
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Long term
investment |
3,650 |
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Projects under
construction |
0 |
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Intangible and
other assets |
48,500 |
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------------------ |
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Total assets |
299,240 |
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=========== |
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Short loan |
58,590 |
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Accounts payable |
155,950 |
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Advances from
clients |
15,870 |
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Taxes payable |
820 |
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Other Accounts
payable |
30,680 |
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Other current
liabilities |
4,560 |
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|
------------------ |
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Current
liabilities |
266,470 |
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Long term
liabilities |
0 |
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------------------ |
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Total
liabilities |
266,470 |
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Equities |
32,770 |
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------------------ |
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Total
liabilities & equities |
299,240 |
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=========== |
Income Statement
Unit: CNY’000
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As of Dec. 31,
2014 |
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Turnover |
873,920 |
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Cost of goods sold |
857,380 |
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Sales expense |
2,130 |
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Management expense |
9,680 |
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Finance expense |
2,890 |
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Profit before tax |
4,070 |
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Less: profit tax |
450 |
|
Profits |
3,620 |
Important
Ratios
=============
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|
As of Dec. 31, 2014 |
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*Current ratio |
0.91 |
|
*Quick ratio |
0.91 |
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*Liabilities
to assets |
0.89 |
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*Net profit
margin (%) |
0.41 |
|
*Return on
total assets (%) |
1.21 |
|
*Inventory
/Turnover ×365 |
/ |
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*Accounts
receivable/Turnover ×365 |
66 days |
|
*Turnover/Total
assets |
2.92 |
|
* Cost of goods
sold/Turnover |
0.98 |
PROFITABILITY:
AVERAGE
l The turnover of SC
appears fairly good.
l SC’s net profit
margin is average.
l SC’s return on
total assets is average.
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 fair
level.
l
SC’s quick ratio is maintained in a normal level.
l
SC has no inventory in 2014.
l
The accounts receivable of SC appears fairly large.
l
The short-term loan of SC appears fairly large.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is high.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
SC is considered medium-sized in its line with fairly stable financial
conditions. The large amount of accounts receivable and short-term loan could
be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.40 |
|
|
1 |
Rs.98.94 |
|
Euro |
1 |
Rs.70.33 |
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 |
|
<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.