MIRA INFORM REPORT
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Report No. : |
327037 |
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Report Date : |
18.06.2015 |
IDENTIFICATION DETAILS
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Name : |
HUANGSHI DONGBEI ELECTRICAL APPLIANCE CO., LTD. |
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Registered Office : |
No. 5, Wuhuang Road, Tieshan District, Huangshi, Hubei Province, 435000 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 (Consolidated) |
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Date of Incorporation : |
10.03.1999 |
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Com. Reg. No.: |
420000400004635 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing and Selling of Plunger Type Hermetically Sealed Compressors. |
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No. of Employees : |
3,958 (Including Main Subsidiaries) |
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 : |
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 – 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 and Address
HUANGSHI DONGBEI ELECTRICAL APPLIANCE CO., LTD.
NO. 5, WUHUANG ROAD, TIESHAN DISTRICT,
HUANGSHI, HUBEI PROVINCE, 435000 PR CHINA
TEL: 86 (0)
714-5415858/5431873 FAX:
86 (0) 714-5420558/5415858
EXECUTIVE
SUMMARY
INCORPORATION DATE : MAR. 10, 1999
REGISTRATION NO. : 420000400004635
REGISTERED LEGAL FORM : SHARES LIMITED COMPANY
STAFF STRENGTH : 3,958 (INCLUDING
main SUBSIDIARIES)
REGISTERED CAPITAL : CNY
235,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER : CNY 3,559,013,000 (CONSOLIDATED, AS OF
DEC. 31, 2014)
EQUITIES : CNY
1,118,739,000 (CONSOLIDATED, AS OF DEC. 31, 2014)
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : WELL KNOWN
EXCHANGE RATE : CNY 6.2067= USD 1
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 shares limited company
at local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) in Mar. 10, 1999.
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 5M. while
that of the co. with foreign investment is CNY 5M. The total capital of a
co. which propose to apply for publicly listed must be no less than CNY
30M. 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 refrigeration compressors and
compressor motors; developing, manufacturing and consulting of high-tech products.
SC is mainly
engaged in manufacturing and selling plunger type hermetically sealed
compressors.
Mr. Yang Baichang has been legal
representative and chairman of SC since 2005.
SC is known
to have approx. 3,958 employees (including main subsidiaries) at present,
including 3,167 production staff, 411 technicians and 65 sales representatives,
etc.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Huangshi. Our checks reveal
that SC owns the total premise about 140,000 square meters.
SC
also has another address located in No. 6, East of Jinshan Road, Economic and
Technological Development Zone, Huangshi, Hubei Province
http://www.donper.com
It is the website of SC’s parent company Huangshi Dongbei Mech-Electrical Group
Co., Ltd. The design is professional and the content is well organized. At
present it is in Chinese, English and other language versions.
E-mail: stock@donper.com
SC was listed in the Shanghai Stock Exchange with stock code of 900956.
SC was ISO9001 certified in 1996, ISO9000: 2000 certified in 2001, and ISO14000
certified in 2003.
In 2004, SC was awarded prize of UNDP/GEF, and the appraisal of the
State Environmental Protection Administration of China, which drove the
technical progress of the whole compressor industry and improved the integral
level of homemade compressors.
SC’s former registration no. was 002678.
Tax Registration Certificate No.: 420205710920880
Organization Code: 71092088-0
MAIN SHAREHOLDERS
(As of Mar. 31, 2015):
Name %
of Shareholding
Huangshi Dongbei Mech-Electrical Group Co.,
Ltd. 50.04
Sun Menglin 1.2
Hu Jiaying 0.74
Credit Suisse (Hong Kong) Limited 0.43
Ma Yonghua 0.3
Xu Xiudi 0.3
Zhou Quan 0.22
Jiang Yishan 0.22
Zhang Zhiping 0.21
Other shareholders: 46.34
Huangshi
Dongbei Mech-Electrical Group Co., Ltd.
=====================================
Huangshi Dongbei Mech-Electrical Group Co., Ltd. is a large-scaled professional
corporation in researching, developing, producing and selling refrigeration
compressors. It was established in 1966. In 1994, it was reunited to be a group
company and now the group is consisted of 7 share controlling companies, there
are 6,000 staffs including 600 technicians. The headquarters was located in the
scenic spot of the well-known Dongfangshan hill and it invested two new
factories in Wuhu city of Anhui province and in Daye of Huangshi city.
The main product of the group is refrigeration compressor;
simultaneously, it also researches and produces refrigeration equipments such
as juice dispenser, ice maker, ice cream machine as well castings, solar energy
products and fiber communication component.
The company is also known as Huangshi Donper M & E Group Co., Ltd.
Registration No.: 420200010008834
Legal representative:
Yang Baichang
Tel: 86-0714-5416688
E-Mail: donper@donper.com
Credit Suisse (Hong Kong) Limited
==========================
CR No.: 0212313
Company Type:
Private company limited by shares
Date of Incorporation: 22-Mar.-1988
Active Status: Live
l Legal
representative and chairman:
Mr. Yang Baichang, born in 1955,
with master’s degree, senior economist. He is currently responsible for the
overall management of SC.
Working Experience(s):
From 2005 to present Working in SC as legal
representative and chairman
Also working in Huangshi Dongbei
Mech-Electrical Group Co., Ltd., Huangshi Donper Mech-Electrical Group Solar
Energy Co., Ltd., Dongbei Electromechanical (Jiangsu) Co., Ltd. and Dongbei
(Wuhan) Technology Innovation Co., Ltd. as legal representative.
l General Manager:
Mr. Lin Yinkun, born in 1971. He is currently responsible for the daily management of
SC.
Working Experience(s):
At present Working in SC as general
manager.
l Vice General
Managers:
Lu Lihua
Dou Zuowei
Gao Jianjun
Zhu Yushan
l Directors:
Zhao Dayou
Liao Han’gang
Lu Yanying
Etc.
l Supervisors:
Jiang Min
Ma Yanping
Hu Rongzhi
SC is mainly
engaged in manufacturing and selling plunger type hermetically sealed compressors.
SC’s products
mainly include: reciprocating hermetic refrigerating compressor of 1/14HP ~
3HP, which are to produce R134a, R600a, R22/R152a, R22, and R404A to match
refrigerator, ice box, display case, water machine, car fridge, cold drink
machine, and ice cream machine, etc.
SC sources its materials
80% from domestic market, and 20% from the overseas market, mainly European
countries. SC sells 85% of its products in domestic market, and 15% to the
overseas market, mainly American and European countries.
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.
Note: SC’s management declined to release
its major suppliers and clients.
Huangshi
Donper Mech-Electrical Group Solar Energy Co., Ltd.
==============================================
Incorporation
Date: 2002-10-21
Registration
No.: 420200010009290
Legal
representative: Yang Baichang
SC is known to have the
following subsidiaries:
Dongbei
Electromechanical (Jiangsu) Co., Ltd. (In Chinese Pinyin)
==================================
Incorporation
Date: 2014-04-18
Registration
No.: 321391000031240
Legal
representative: Yang Baichang
Dongbei
(Wuhan) Technology Innovation Co., Ltd. (In Chinese Pinyin)
=====================================
Incorporation
Date: 2014-2-27
Registration
No.: 420115000075440
Legal
representative: Yang Baichang
Etc.
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 refused to release
any information about its bank.
Consolidated
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31, 2014 |
As of Dec. 31, 2013 |
|
Cash & bank |
653,858 |
528,112 |
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Notes receivable |
840,593 |
733,301 |
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Inventory |
432,248 |
528,985 |
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Accounts
receivable |
817,591 |
999,871 |
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Advances to
supplies |
138,164 |
127,410 |
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Dividend
receivable |
27,395 |
0 |
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Other
receivables |
22,782 |
10,294 |
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Other current
assets |
37,505 |
14,511 |
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------------------ |
------------------ |
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Current assets |
2,970,136 |
2,942,484 |
|
Long-term
investments |
5,350 |
5,579 |
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Investment
property |
3,712 |
3,877 |
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Fixed assets net
value |
862,594 |
816,542 |
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Projects under
construction |
220,622 |
14,031 |
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Intangible
assets |
72,433 |
75,741 |
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Long-term
deferred expenses |
7,727 |
1,032 |
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Deferred income
tax assets |
4,512 |
6,900 |
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Other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
4,147,086 |
3,866,186 |
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============= |
============= |
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Short loans |
778,628 |
682,507 |
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Notes payable |
1,057,512 |
736,274 |
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Accounts payable |
715,144 |
940,272 |
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Advances from
customers |
14,086 |
14,763 |
|
Accrued Payroll |
26,745 |
42,109 |
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Taxes payable |
25,721 |
44,021 |
|
Interest payable |
0 |
960 |
|
Dividend payable |
10,009 |
10,009 |
|
Other accounts
payable |
205,755 |
190,061 |
|
Other current
liabilities |
0 |
0 |
|
|
----------------- |
----------------- |
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Current
liabilities |
2,833,600 |
2,660,976 |
|
Long term
liabilities |
194,747 |
147,224 |
|
|
------------------ |
------------------ |
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Total
liabilities |
3,028,347 |
2,808,200 |
|
Shareholders
equities |
1,118,739 |
1,057,986 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
4,147,086 |
3,866,186 |
|
|
============= |
============= |
Consolidated
Income Statement
Unit: CNY’000
|
|
as of Dec. 31, 2014 |
As of Dec. 31, 2013 |
|
Turnover |
3,559,013 |
4,264,032 |
|
Cost of goods
sold |
3,073,947 |
3,722,179 |
|
Taxes and
additional of main operation |
15,069 |
16,339 |
|
Sales expense |
88,373 |
94,364 |
|
Management expense |
262,259 |
276,766 |
|
Finance expense |
49,280 |
45,573 |
|
Asset impairment loss |
-1,482 |
1,696 |
|
Investment
income |
-219 |
53,619 |
|
Non-operating
income |
32,789 |
17,583 |
|
Non-operating expense |
9,083 |
25,178 |
|
Profit before
tax |
95,054 |
153,139 |
|
Less: profit tax |
11,856 |
36,500 |
|
Net profit |
83,198 |
116,639 |
Important Ratios
=============
|
|
as of Dec. 31, 2014 |
As of Dec. 31, 2013 |
|
*Current ratio |
1.05 |
1.11 |
|
*Quick ratio |
0.90 |
0.91 |
|
*Liabilities
to assets |
0.73 |
0.73 |
|
*Net profit
margin (%) |
2.34 |
2.74 |
|
*Return on
total assets (%) |
2.01 |
3.02 |
|
*Inventory
/Turnover ×365 |
45 days |
46 days |
|
*Accounts
receivable/Turnover ×365 |
84 days |
86 days |
|
*Turnover/Total
assets |
0.86 |
1.10 |
|
* Cost of
goods sold/Turnover |
0.86 |
0.87 |
PROFITABILITY:
AVERAGE
l The turnover of SC
appears 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 average, comparing with
its turnover.
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 average.
l
The accounts receivable of SC is average.
l
The short term loan of SC is fairly large.
l
SC’s turnover is in an average level in 2013, but
fair in 2014, 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 low.
Overall financial
condition of the SC: Fairly Stable.
SC is well-known in its industry with fairly stable financial
conditions. The fairly large amount of short loans could be a threat to SC’s
financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.11 |
|
|
1 |
Rs.100.32 |
|
Euro |
1 |
Rs.72.17 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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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.