MIRA INFORM REPORT
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Report No. : |
326819 |
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Report Date : |
19.06.2015 |
IDENTIFICATION DETAILS
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Name : |
DONGFENG BEHR THERMAL
SYSTEMS CO., LTD. |
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Registered Office : |
Fengshu 5th Road, Economic Technology Development Zone, Wuhan,Hubei
Province 430056 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
10.06.2014 |
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Com. Reg. No.: |
420100400009593 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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Line of Business : |
Subject is engaged in researching, developing, manufacturing and
selling heating system products |
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No. of Employee : |
998 |
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
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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
DONGFENG BEHR THERMAL SYSTEMS CO., LTD.
FENGSHU 5TH
ROAD, ECONOMIC TECHNOLOGY DEVELOPMENT ZONE, WUHAN,HUBEI PROVINCE 430056 PR
CHINA
TEL: 86 (0)
27-84281056 FAX: 86 (0) 27- 84281053
EXECUTIVE
SUMMARY
INCORPORATION DATE : JUN. 10, 2004
REGISTRATION NO. : 420100400009593
REGISTERED LEGAL FORM : Chinese-foreign equity
joint venture enterprise
STAFF STRENGTH :
998
REGISTERED CAPITAL : CNY 138,636,000
BUSINESS LINE :
R&D, MANUFACTURING & TRADING
TURNOVER :
CNY 883,650,000 (AS OF DEC. 31,
2014)
EQUITIES :
CNY 405,090,000 (AS OF DEC. 31, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.21= 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
SC was registered as a Chinese-foreign
equity joint venture enterprise at local Administration for Industry &
Commerce (AIC - The official body of issuing and renewing business license) on
Jun. 10, 2004.
Company Status:
Chinese-foreign equity joint venture enterprise
This form of business in PR China is defined as a legal person. It is a
limited co. jointly invested by one or more foreign companies and one or more
PR China controlled companies within the territories of PR China according to a
certain proportion of capital investment. The investing parties exercise
business management, share profits and bear all risks and liabilities of the
co. together. The equity joint venture law requires that foreign party
contribute not less than 25% of the registered capital, with no maximum. The
investing parties are free to agree on method of profit distribution and liabilities
bearing according to the proportion of capital investment. Each investing
parties contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has a limited
duration of 10 to 50 years. Enterprise with large investment, long construction
periods, low investment returns, introducing of advanced technology &
advanced technology products that have good competition position in
international market may extend beyond the 50 years limit.
SC’s
registered business scope includes researching, developing, manufacturing and
selling the engine cooling system, automobile air conditioners, modules and
components and other heating system products; providing after-sale service.
SC is mainly
engaged in researching, developing, manufacturing and selling heating system
products.
Mr. Weng Yunzhong
is legal representative and chairman of SC at present.
SC is known to
have approx. 998 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in the development zone of Wuhan. The
detailed premise information is unspecified.
http://www.dbts.cn/
The website can’t be found at present.
E-mail: shaoxia.fang@dbts.cn
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
Organization code: 761234717
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name
% of Shareholding
Dongfeng Motor Parts and Components Group
Co., Ltd. 50
(Germany) Behr GmbH & Co. KG 50
Dongfeng Motor Parts and Components Group
Co., Ltd.
---------------------------------------------------------------------
Registered no.: 420300000108843
Legal representative: Tong Dongcheng
Establishment date:
Tel: 0719-8220276
Web: http://www.dfpcgroup.com/
l Legal
representative and chairman:
Mr. Weng Yunzhong , born in 1965, with
Master’s degree. He is currently responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as legal representative and
chairman.
Also working in
Dongfeng Motor Parts and Components Group Co., Ltd. as director.
l General manager:
Mr. Han Li
is currently responsible for the daily management of SC.
Working Experience(s):
At present Working in SC as general manager.
Also working in Dongfeng Behr Thermal
Systems Co., Ltd. Shiyan Factory as principal; in Dongfeng Pan
Automobile Aluminium Heat Exchanger Co., Ltd as legal representative.
l Directors:
--------------------
Mao Li
Wang Yong
Michael Frick
SC is mainly engaged
in researching, developing, manufacturing and selling heating system products.
SC’s products mainly include the engine cooling system, automobile air
conditioners, modules and components, etc.
SC sources its
materials 60% from domestic market and 40% 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.
Trademark & Patents
|
Registration No. |
4286384 |
|
Registration Date |
|
|
Trademark Design |
|
Branch:
Dongfeng Behr Thermal Systems
Co., Ltd. Shiyan Factory
Registered
no.: 420300500001751
Principal:
Han Li
Establishment
date:
Subsidiary:
Dongfeng
Pan Automobile Aluminium Heat Exchanger Co., Ltd
Registered
no.: 420300400000583
Legal
representative: Han Li
Establishment
date:
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 accountant
refused to release the bank details.
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2014 |
|
Cash & bank |
59,710 |
|
Inventory |
70,030 |
|
Bills receivable |
245,280 |
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Accounts
receivable |
397,940 |
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Advances to
suppliers |
13,980 |
|
Other
receivables |
43,720 |
|
Other current
assets |
30 |
|
|
------------------ |
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Current assets |
830,690 |
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Fixed assets net
value |
101,620 |
|
Long term
investment |
42,980 |
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Projects under
construction |
19,530 |
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Intangible and
other assets |
52,040 |
|
|
------------------ |
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Total assets |
1,046,860 |
|
|
=========== |
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Short loan |
0 |
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Accounts payable |
223,680 |
|
Bills payable |
140,240 |
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Advances from
clients |
720 |
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Salaries payable |
36,630 |
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Taxes payable |
19,950 |
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Other Accounts
payable |
179,790 |
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Other current
liabilities |
4,110 |
|
|
------------------ |
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Current
liabilities |
605,120 |
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Long term
liabilities |
36,650 |
|
|
------------------ |
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Total
liabilities |
641,770 |
|
Equities |
405,090 |
|
|
------------------ |
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Total
liabilities & equities |
1,046,860 |
|
|
=========== |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31,
2014 |
|
Turnover |
883,650 |
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Cost of goods sold |
615,870 |
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Sales expense |
39,180 |
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Management expense |
108,790 |
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Finance expense |
890 |
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Profit before tax |
116,830 |
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Less: profit tax |
13,260 |
|
Profits |
103,570 |
Important
Ratios
=============
|
|
As of Dec. 31, 2014 |
|
*Current ratio |
1.37 |
|
*Quick ratio |
1.26 |
|
*Liabilities
to assets |
0.61 |
|
*Net profit
margin (%) |
11.72 |
|
*Return on total
assets (%) |
9.89 |
|
*Inventory
/Turnover ×365 |
29 days |
|
*Accounts
receivable/Turnover ×365 |
165 days |
|
*Turnover/Total
assets |
0.84 |
|
* Cost of
goods sold/Turnover |
0.70 |
PROFITABILITY:
FAIRLY GOOD
l The turnover of SC
appears fairly good.
l SC’s net profit
margin is good.
l SC’s return on
total assets is fairly good.
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 appears average.
l
The accounts receivable of SC appears fairly large.
l
SC has no short-term loan in 2014.
l
SC’s turnover is in a fair 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.
SC is considered medium-sized in its line with fairly stable financial conditions.
The large amount of accounts receivable could be a threat to SC’s financial
condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.11 |
|
UK Pound |
1 |
Rs.100.32 |
|
Euro |
1 |
Rs.72.17 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAS |
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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 |
|
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.