MIRA INFORM REPORT
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Report No. : |
329283 |
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Report Date : |
29.06.2015 |
IDENTIFICATION DETAILS
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Name : |
ningbo hongri electric appliance co., ltd. |
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Registered Office : |
No.
17, Hengpeng Road, Henghe Town, Cixi,
Zhejiang Province 315318 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
12.02.2001 |
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Com. Reg. No.: |
330200400031849 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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Line of Business : |
Manufacturing of Electric Glass, Food Processing Machine, Bread Oven,
Coffee Maker, Juicer, and Reducer. |
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No. of Employees : |
120 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Unknown |
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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
ningbo hongri electric appliance co., ltd.
No. 17, Hengpeng
Road, Henghe Town, Cixi,
Zhejiang Province 315318 PR CHINA
TEL: 86 (0)
574-63267131 FAX: 86 (0)
574-63267711
EXECUTIVE
SUMMARY
INCORPORATION DATE : february 12, 2001
REGISTRATION NO. : 330200400031849
REGISTERED LEGAL FORM : Chinese-foreign equity
joint venture enterprise
STAFF STRENGTH : 120
REGISTERED CAPITAL : usd 250,000
BUSINESS LINE :
manufacturing & trading
TURNOVER : CNY 109,243,000
(as of dec. 31, 2012)
EQUITIES : CNY 34,509,000
(AS OF DEC. 31, 2012)
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.2794 =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 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 February 12, 2001.
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 manufacturing electric glass, food processing machine,
bread oven, coffee maker, juicer, and reducer.
SC is mainly
engaged in manufacturing and selling electric appliance.
Mr. Hu Zhengyuan
is the legal representative, general manager and chairman of SC at present.
SC is known to
have approx. 120 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 Cixi. Our
checks reveal that SC rents the total premise, but the gross area is
unspecified.
http://www.china-cxhf.com/
The website belongs to SC and Cixi Hongfa Electrical Appliance Co., Ltd. The design
is professional and the content is well organized. At present the web site is
both in Chinese and English versions.
E-mail: junming1818@126.com
Changes of its
registered information are as follows:
|
Date of change |
Item |
Before the
change |
After the change |
|
2007-05-18 |
Shareholders |
Lin Yikun (Taiwanese) 40% Cixi Hongfa
Electrical Appliance Co., Ltd. 60% |
Lin Yikun (Taiwanese) 40% Hu Zhengyuan 60% |
|
2007-06-27 |
Shareholders |
Lin Yikun (Taiwanese) 40% Hu Zhengyuan 60% |
Present ones |
|
2008-09-16 |
Registration no. |
005076 |
330200400031849 |
Subject passed the
annual inspection of 2012 with Administration for Industry & Commerce.
Tax registration number: 330282726386352
Organization code: 726386352
For the past two years there is no record of litigation.
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Hong Kong Jindier International Limited 40
Hu Zhengyuan 60
Hong Kong Jindier International Limited
==============================
CR No.: 1133889
Company Type: Private company limited by
shares
Date of Incorporation: 18-May-2007
Active Status: Live
l Chairman, General
Manager and Legal representative:
Mr. Hu Zhengyuan, born in 1942, with university education. He is
currently responsible for the overall management of SC.
Working
Experience(s):
At present Working in
SC as chairman, general manager and legal representative
Also working in Cixi Hongfa Electrical Appliance Co., Ltd. as legal
representative.
l Vice Chairman:
Ms. Sun Jianfen, born in 1973. She is currently responsible for the
daily management of SC.
Working Experience(s):
At present Working in
SC as vice chairman.
l Director:
Yang Meilan
l Supervisor:
Hu Junming
SC is mainly
engaged in manufacturing and selling electric appliance.
Brand: 
SC’s products
mainly include: gear box, bearing case, clutch and electric kettle.
SC sources its materials 90% from domestic
market and 10% from overseas market. SC sells 40% of its products in domestic
market, and 60% 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 T/T, L/C and Credit of 30-60 days.
Note: SC declined
to release its major suppliers and clients.
Cixi Hongfa Electrical Appliance Co., Ltd.
===============================
Registered no.: 330282000009034
Legal representative: Hu Zhengyuan
Establishment date:
Website: http://www.china-cxhf.com/
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.
Agricultural
Bank of China Cixi Henghe Sub-branch
AC#:
39508001040001708
Relationship:
Normal
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
Cash & bank |
13,776 |
12,810 |
|
Inventory |
9,286 |
11,032 |
|
Accounts
receivable |
30,296 |
38,227 |
|
Advances to
suppliers |
139 |
668 |
|
Prepaid expenses |
574 |
0 |
|
Other
receivables |
34,016 |
18,912 |
|
|
------------------ |
------------------ |
|
Current assets |
88,087 |
81,649 |
|
Fixed assets net
value |
6,060 |
4,990 |
|
|
------------------ |
------------------ |
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Total assets |
94,147 |
86,639 |
|
|
=========== |
=========== |
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Short loan |
4,230 |
9,030 |
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Note payable |
18,160 |
15,610 |
|
Accounts payable |
29,661 |
17,921 |
|
Advances from
customers |
1,296 |
779 |
|
Other accounts
payable |
633 |
83 |
|
Salary payable |
1,772 |
2,002 |
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Welfare payable |
2,244 |
2,244 |
|
Unpaid taxes |
558 |
584 |
|
Unpaid profit |
8,613 |
3,806 |
|
Other unpaid
expenses |
61 |
71 |
|
Accrued expenses |
905 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
68,133 |
52,130 |
|
Long term
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Total
liabilities |
68,133 |
52,130 |
|
Equities |
26,014 |
34,509 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
94,147 |
86,639 |
|
|
=========== |
=========== |
Income Statement
Unit: CNY’000
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
Turnover |
111,335 |
109,243 |
|
Cost of goods
sold |
86,902 |
83,771 |
|
Taxes and additional of main operation |
508 |
495 |
|
Sales expense |
4,746 |
5,717 |
|
Management expense |
5,065 |
6,404 |
|
Finance expense |
2,596 |
1,344 |
|
Profit from
other operations |
33 |
60 |
|
Non-operating
income |
34 |
23 |
|
Non-operating expense |
125 |
148 |
|
Profit before
tax |
11,460 |
11,447 |
|
Less: profit tax |
2,937 |
2,945 |
|
Profits |
8,523 |
8,502 |
Important
Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio
|
1.29 |
1.57 |
|
*Quick ratio |
1.16 |
1.35 |
|
*Liabilities
to assets |
0.72 |
0.60 |
|
*Net profit
margin (%) |
7.66 |
7.78 |
|
*Return on
total assets (%) |
9.05 |
9.81 |
|
*Inventory
/Turnover ×365 |
31 days |
37 days |
|
*Accounts receivable/Turnover
×365 |
100 days |
128 days |
|
*Turnover/Total
assets |
1.18 |
1.26 |
|
* Cost of
goods sold/Turnover |
0.78 |
0.77 |
PROFITABILITY:
FAIRLY GOOD
l The turnover of SC appears fairly good in its line in both years.
l SC’s net profit
margin is fairly good in both years.
l SC’s return on
total assets is fairly good in both years.
l
SC’s cost of goods sold is average in both years.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level in both years.
l
SC’s quick ratio is maintained in a normal level in both years.
l
The inventory of SC appears average in both years.
l
The accounts receivable of SC is large in both years.
l
SC’s short loans are average in both years.
l
SC’s turnover is in an average level in both years, comparing with the size of
its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average in both years.
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 situation.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.60 |
|
|
1 |
Rs.100.09 |
|
Euro |
1 |
Rs.71.23 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
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Report Prepared
by : |
ANK |
RATING EXPLANATIONS
|
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 |
|
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
|
-- |
NB |
New Business |
-- |
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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.