MIRA INFORM REPORT
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Report No. : |
333062 |
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Report Date : |
24.07.2015 |
IDENTIFICATION DETAILS
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Name : |
Guangdong KinLong Hardware Products Co.,
Ltd. |
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Registered Office : |
No. 3, JIANLANG
ROAD, Daping VILLAGE, Tangxia Town, DongGuan, GUANGDONG PROVINCE, 523722 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
26.06.2003 |
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Com. Reg. No.: |
441900000059295 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject is engaged in manufacturing and selling hardware products |
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No. of Employee : |
6,657 |
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 : |
Good |
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Payment Behaviour : |
Regular |
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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
|
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.
|
Source
: CIA |
Company
name
Guangdong KinLong Hardware Products Co., Ltd.
No. 3, JIANLANG
ROAD, Daping VILLAGE, Tangxia Town,
DongGuan, GUANGDONG
PROVINCE, 523722 PR CHINA
TEL: 86 (0)
769-82166666 FAX: 86 (0)
769-82955269
EXECUTIVE
SUMMARY
INCORPORATION DATE : JUNE 26, 2003
REGISTRATION NO. : 441900000059295
REGISTERED LEGAL FORM : Shares limited company
STAFF STRENGTH :
6,657
REGISTERED CAPITAL : CNY 170,000,000
BUSINESS LINE :
manufacturing and trading
TURNOVER :
CNY 2,025,335,000 (CONSOLIDATED,
AS OF DEC. 31, 2014)
EQUITIES :
CNY 1,178,106,000 (CONSOLIDATED, AS OF DEC. 31, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY GOOD
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : well-known
EXCHANGE RATE :
CNY 6.21 = USD
Adopted abbreviations:
ANS - amount not stated NS - not stated SC - subject company (the company inquired by you)
NA - not available CNY - China Yuan Renminbi
Note: The given fax number 0769- 82955241
can’t be connected.
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 June 26, 2003 and has been under present ownership since
2011.
Company Status:
Shares limited co.
This form of business in PR China is defined as a legal person. Its registered
capital is divided into shares of equal par value and the co. raises capital by
issuing share certificates by promotion or by public offer. Shareholders bear
limited liability to the extent of shareholding, and the co. is liable for its
debts only to the extent of its total assets. The co has independent property
of legal person and enjoys property rights of legal person. The characteristics
of the shares limited co. are as follows:
The establishment of the co. requires at least two promoters and no more
than 200, half of whom shall be domiciled in China. Natural person are allowed
to serve as promoters.
The minimum registered capital of a co. is CNY
The board of directors must consist of five
to nineteen directors.
If the co. raises capital by public
offer, the promoters must not subscribe less than 35% of the total shares. the
promoters’ shares are restricted to transfer- within one year of the offer.
A state-owned enterprise that is
restructured into a shares limited co. must comply with the conditions &
requirements specified under the law & administrative rule.
SC’s registered
business scope includes manufacturing and selling stainless steel products,
metal building components, doors and windows hardware fittings, guardrail
hardware accessories, door control hardware accessories, bathroom hardware,
wire rope, steel rod, smart door locks, curtain wall materials; general cargo.
SC is mainly
engaged in manufacturing and selling hardware products.
Mr. Bai
Baokun is the legal representative,
chairman and general manager of SC at present.
SC is known to have approx. 6,657 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Dongguan. SC’s
accountant refused to release the detail information of the total premise.
http://www.kinlong.com
The design is professional and the content is well organized. At present it is
in Chinese, English and other versions.
Email: mail@Kinlong.com
SC has got the certificate ISO9001.
Changes
of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
2005-12 |
Registered capital |
CNY 2,000,000 |
CNY 5,000,000 |
|
2007-08 |
Registered capital |
CNY 5,000,000 |
CNY 13,000,000 |
|
Registration No. |
4419002014843 |
441900000059295 |
|
|
2007-12 |
Registered capital |
CNY 13,000,000 |
CNY 38,000,000 |
|
2008-04 |
Registered capital |
CNY 38,000,000 |
CNY 60,000,000 |
|
2009-09 |
Registered capital |
CNY 60,000,000 |
CNY 100,000,000 |
|
2010-01 |
Company name |
Dongguan Kin Long Hardware Products Co., Ltd. |
Guangdong Kinlong Hardware Products Co., Ltd. |
|
2010-04 |
Registered capital |
CNY 100,000,000 |
CNY 170,000,000 |
|
2011-4 |
Chinese name |
|
Present one |
|
Legal form |
Limited liabilities co. |
Present one |
Note: SC changed its Chinese name in 2011, while its English name
remains the same.
Organization Code: 752085190
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Bai Baokun 47.19
Yan Guilin 11.70
Chen Ping 9.90
Bai Baoping 9.90
Wang Xiaoli 5.40
Dongguan Jianxin Industrial Investment Co.,
Ltd. 2.06
Dongguan Xingyuan Industrial Investment Co.,
Ltd. 2.06
Bai Baopeng 2.00
Yin Jianzhong 1.50
Dongguan Jianshou Industrial Investment Co.,
Ltd. 1.18
Du Wanming 1.00
Zhang Dekai 1.00
Zhao Jian 1.00
Other individuals 4.11
l
Legal representative, chairman and
general manager:
Mr. Bai Baokun, ID# 41072119700327****, born
in 1970, with junior college education. He is currently responsible for the
overall management of SC.
Working Experience(s):
At present Working in SC as chairman, legal representative
and general manager.
Also working in Guangdong
Kinex Hardware Products Co., Ltd., Beijing Ouchao Building Materials Co., Ltd.
as legal representative.
l Directors:
Zhao Jian
Yan Guilin
Wang Xiaoli
l Supervisors:
Li Hailin
Shang Deling
SC is mainly
engaged in manufacturing and selling hardware products.
Main Products:
Point-Fixed Glass Wall Fittings, Aluminum Door & Window Accessory, S.S Post
Railing Systems, Door Controls Hardware Fittings, U Groove Door & Window
Accessory, Mortice Lock Series, Micro S.S Coble System, Furniture Hardware
Accessory, S.S Tension Cable & Tension Rod, Carbon Steel Tension Cable
& Tension Rod, Bathroom Hardware Accessory, Smart Door Lock, etc.
SC sources its materials 80% from domestic
market, and 20% 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 declined to release its major suppliers and clients.
SC
is known to have the following subsidiaries:
Guangdong
Kinex Hardware Products Co., Ltd.
Guang
Dong Kinlong Hardware Products (HK) Co., Limited
Shenzhen
Kinlong Haibeisi Intelligent Technology Co., Ltd.
Beijing
Kinlong Hardware Products Co., Ltd.
Beijing
Ouchao Building Materials Co., Ltd.
Branches:
Guangdong
Kinlong Hardware Products Co., Ltd. Shenzhen Branch
Guangdong
Kinlong Hardware Products Co., Ltd. Guangzhou Branch
Guangdong
Kinlong Hardware Products Co., Ltd. Huizhou Branch
Guangdong
Kinlong Hardware Products Co., Ltd. Jinan Branch
Guangdong
Kinlong Hardware Products Co., Ltd. Qingdao Branch
Guangdong
Kinlong Hardware Products Co., Ltd. Beijing Branch
Guangdong
Kinlong Hardware Products Co., Ltd. Chongqing Branch
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.
SC’s management
declined to release its bank details.
Consolidated
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2013 |
As
of Dec. 31, 2014 |
|
Cash & bank |
297,163 |
277,818 |
|
Bills receivable |
37,619 |
93,687 |
|
Inventory |
346,269 |
418,323 |
|
Accounts
receivable |
243,986 |
363,879 |
|
Other Accounts
receivable |
16,517 |
16,086 |
|
Advances to
suppliers |
17,336 |
19,634 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
958,890 |
1,189,427 |
|
Fixed assets net
value |
281,940 |
299,111 |
|
Projects under
construction |
34,471 |
58,692 |
|
Long term
investment |
0 |
0 |
|
Intangible
assets |
94,244 |
108,276 |
|
Deferred tax
assets |
2,784 |
4,655 |
|
Other assets |
6,303 |
7,648 |
|
|
------------------ |
------------------ |
|
Total assets |
1,378,632 |
1,667,809 |
|
|
============= |
============= |
|
Short loans |
40,458 |
89,735 |
|
Bills payable |
0 |
0 |
|
Accounts payable |
228,719 |
219,314 |
|
Advances from
clients |
65,129 |
55,660 |
|
Salaries and
welfare payable |
57,161 |
84,262 |
|
Taxes payable |
18,226 |
29,256 |
|
Other payable |
6,710 |
9,910 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
416,403 |
488,137 |
|
Long-term
liabilities |
0 |
1,566 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
416,403 |
489,703 |
|
Equities |
962,229 |
1,178,106 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
1,378,632 |
1,667,809 |
|
|
============= |
============= |
Consolidated
Income Statement
Unit: CNY’000
|
|
As of Dec. 31,
2013 |
As of Dec. 31,
2014 |
|
Turnover |
1,749,335 |
2,025,335 |
|
Cost of goods
sold |
1,052,090 |
1,219,061 |
|
Sales expense |
248,465 |
341,786 |
|
Management expense |
158,438 |
181,860 |
|
Finance expense |
3,946 |
5,043 |
|
Investment
income |
0 |
0 |
|
Profit before
tax |
272,130 |
256,976 |
|
Less: profit tax |
42,679 |
41,197 |
|
Profits |
229,451 |
215,779 |
Important
Ratios
=============
|
|
As
of Dec. 31, 2013 |
As
of Dec. 31, 2014 |
|
*Current ratio |
2.30 |
2.44 |
|
*Quick ratio |
1.47 |
1.58 |
|
*Liabilities
to assets |
0.30 |
0.29 |
|
*Net profit
margin (%) |
13.12 |
10.65 |
|
*Return on
total assets (%) |
16.64 |
12.94 |
|
*Inventory
/Turnover ×365 |
73 days |
76 days |
|
*Accounts
receivable/Turnover ×365 |
51 days |
66 days |
|
*Turnover/Total
assets |
1.27 |
1.21 |
|
* Cost of
goods sold/Turnover |
0.60 |
0.60 |
PROFITABILITY:
FAIRLY GOOD
l The turnover of SC
appears good in its line.
l SC’s net profit
margin is good.
l SC’s return on
total assets is good.
l SC’s cost of goods
sold is average, comparing with its turnover.
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 normal level.
l
The inventory of SC appears fairly large.
l
The accounts receivable of SC appears average.
l
SC’s short-term loan appears average.
l
SC’s turnover is in an average 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 average.
Overall financial
condition of the SC: Fairly good
SC is considered well-known in its line with fairly good financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.71 |
|
|
1 |
Rs.99.57 |
|
Euro |
1 |
Rs.69.63 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAS |
|
|
|
|
Report Prepared
by : |
ASH |
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.