MIRA INFORM REPORT
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Report No. : |
324784 |
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Report Date : |
30.05.2015 |
IDENTIFICATION DETAILS
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Name : |
ZHEJIANG COMMSPACE CABLE CO., LTD. |
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Registered Office : |
No. 38 Wangyun West Road, Zhuji, Zhejiang Province 311800 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
29.12.2001 |
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Com. Reg. No.: |
330600400020115 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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Line of Business : |
Subject engaged in manufacturing and selling wires, cables and
electrical connectors. |
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No. of Employee : |
200 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
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.
|
Source
: CIA |
COMPANY
NAME AND ADDRESS
ZHEJIANG COMMSPACE CABLE CO., LTD.
NO. 38 WANGYUN WEST
ROAD, ZHUJI, ZHEJIANG PROVINCE 311800 PR CHINA
TEL: 86 (0) 575-87028334/87103659
FAX: 86 (0)
575-87010508
EXECUTIVE
SUMMARY
Date
of Registration :
december 29, 2001
REGISTRATION
NO. :
330600400020115
LEGAL FORM : Chinese-foreign equity joint venture
enterprise
REGISTERED
CAPITAL : usd 5,250,000
staff :
200
BUSINESS
CATEGORY : MANUFACTURING & TRADING
Revenue :
CNY 155,559,000 (AS OF DEC. 31, 2013)
EQUITIES :
CNY 72,902,000 (AS OF DEC. 31, 2013)
WEBSITE : www.commspace.com.cn
E-MAIL :
cable@commspace.com.cn
PAYMENT
:
AVERAGE
MARKET
CONDITION :
average
FINANCIAL
CONDITION : fairly
stable
OPERATIONAL
TREND : fairly STEADY
GENERAL
REPUTATION : AVERAGE
EXCHANGE
RATE : CNY
6.20 = USD 1
Adopted abbreviations (as follows)
SC - Subject Company (the company inquired by you)
N/A – Not available
CNY – China Yuan Ren Min Bi
OPERATIONAL
TREND & GENERAL REPUTATION
This section aims at
indicating the relative positions of SC in respect of its operational trend
& general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not
yet be determined
Not yet be
determined
LEGAL
STATUS & HISTORY
SC was established as a Chinese-foreign
equity joint venture enterprise of PRC with State Administration of Industry
& Commerce (SAIC) under registration No.: 330600400020115
on December 29, 2001.
SC’s Organization Code Certificate No.: 73451416-6
SC’s Tax No.: 330681734514166
SC’s registered capital: USD 5,250,000
SC’s paid-in capital: USD 5,250,000 (CNY 43,322,597.13)
Registration
Change Record:-
|
Date |
Change of
Contents |
Before the
change |
After the
change |
|
|
Registered Capital |
USD 1,250,000 |
USD 5,250,000 |
|
|
Company Name |
Zhuji Hengrui
Cable Co., Ltd. |
Zhejiang
Commspace Cable Co., Ltd. |
|
|
Legal Representative |
Qian Jinling |
Zhou Shiying |
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|
Legal Representative |
Zhou Shiying |
Qian Jinling |
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Registration No. |
001881 |
330600400020115 |
|
|
Legal Representative |
Qian Jinling |
Lu Peiyu |
Current Co
search indicates SC’s shareholders & chief executives are as follows:-
|
Name of
Shareholder (s) |
% of
Shareholding |
|
Luyisi Dude (Belgium) |
95.24 |
|
Qian Jinling |
4.76 |
SC’s Chief
Executives:-
|
Position |
Name |
|
Legal Representative, Chairman and General Manager |
Lu Peiyu |
|
Vice Chairman |
Qian Jinling |
|
Director |
Chen Xiaohang |
|
Zhou Shiying |
|
|
Lu Peifu |
RECENT
DEVELOPMENT
No recent
development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Luyisi Dude (Belgium) 95.24
Qian Jinling 4.76
MANAGEMENT
Lu Peiyu, Legal Representative, Chairman
and General Manager
------------------------------------------------------------------------------------------------
Ø Gender: M
Ø Qualification:
University
Ø Working experience
(s):
From 2013 to present, working in SC as legal
representative, chairman and general manager
Qian
Jinling, Vice Chairman
-------------------------------------------------
Ø Gender: F
Ø Qualification:
University
Ø Working experience
(s):
Before, worked in SC as legal representative
At present, working in SC as vice chairman
Director
----------
Chen Xiaohang
Zhou Shiying
Lu Peifu
BUSINESS
OPERATION
SC’s registered business scope includes manufacturing wires, cables and electrical connectors; selling its
owned products.
SC is mainly engaged in manufacturing and
selling wires, cables and electrical connectors.
Brand: COMMSPACE
SC’s products mainly include: coaxial cable
SC sources its materials 100% from domestic market, mainly Zhejiang. SC
sells 60% of its products in domestic market, and 40% to overseas market.
The buying terms of SC include Check, T/T
and Credit of 30-60 days. The payment terms of SC include T/T, L/C and Credit
of 30-60 days.
*Major Customers*
-----------------------
PPC Broadband Inc.
Conductores Electricos S.A.
Staff
& Office:
--------------------------
SC is known to have approx. 200 staff at present.
SC owns an area as its operating office
& factory of approx. 45,000 sq. meters at the heading address.
RELATED
COMPANY
SC is not known to have any subsidiary at present.
PAYMENT
Overall payment
appraisal:
( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be 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.
BANKING
The bank
information of SC is not filed in SAIC.
FINANCIALS
Balance
Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
|
3,236 |
13,427 |
|
|
Notes
receivable |
0 |
0 |
|
Accounts receivable |
108,521 |
40,747 |
|
Advances to suppliers |
1,134 |
4,112 |
|
Other receivable |
221,481 |
225,756 |
|
Inventory |
15,194 |
18,278 |
|
Non-current assets within one year |
0 |
0 |
|
Other current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
349,566 |
302,320 |
|
Fixed assets |
43,927 |
38,832 |
|
Construction in progress |
0 |
913 |
|
Intangible assets |
2,263 |
2,207 |
|
Long-term prepaid expenses |
0 |
0 |
|
Deferred income tax assets |
0 |
0 |
|
Other non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
395,756 |
344,272 |
|
|
============= |
============= |
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Short-term loans |
275,800 |
206,200 |
|
Notes payable |
0 |
0 |
|
Accounts payable |
18,006 |
21,406 |
|
Wages payable |
0 |
0 |
|
Taxes payable |
1,095 |
-484 |
|
Advances from clients |
792 |
0 |
|
Other payable |
28,775 |
43,273 |
|
Other current liabilities |
933 |
801 |
|
|
------------------ |
------------------ |
|
Current liabilities |
325,401 |
271,196 |
|
Non-current liabilities |
114 |
174 |
|
|
------------------ |
------------------ |
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Total liabilities |
325,515 |
271,370 |
|
Equities |
70,241 |
72,902 |
|
|
------------------ |
------------------ |
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Total liabilities & equities |
395,756 |
344,272 |
|
|
============= |
============= |
Income
Statement
|
Unit: CNY’000 |
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
|
Revenue |
162,298 |
155,559 |
|
Cost of sales |
139,809 |
128,306 |
|
Taxes and surcharges |
757 |
717 |
|
Sales expense |
3,345 |
4,397 |
|
Management expense |
14,574 |
16,191 |
|
Finance expense |
135 |
1,233 |
|
Non-business income |
325 |
30 |
|
Non-business expenditure |
517 |
586 |
|
Profit before tax |
3,485 |
4,159 |
|
Less: profit tax |
1,050 |
1,498 |
|
2,435 |
2,661 |
Important Ratios
=============
|
|
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
*Current ratio |
1.07 |
1.11 |
|
*Quick ratio |
1.03 |
1.05 |
|
*Liabilities
to assets |
0.82 |
0.79 |
|
*Net profit
margin (%) |
1.50 |
1.71 |
|
*Return on
total assets (%) |
0.62 |
0.77 |
|
*Inventory /
Revenue ×365 |
35 days |
43 days |
|
*Accounts
receivable/ Revenue ×365 |
245 days |
96 days |
|
*Revenue/Total
assets |
0.41 |
0.45 |
|
*Cost of sales
/ Revenue |
0.86 |
0.82 |
FINANCIAL
COMMENTS
PROFITABILITY: AVERAGE
l
The
revenue of SC appears fairly good in its line.
l
SC’s
net profit margin is average.
l
SC’s
return on total assets is average.
l SC’s cost of sales is average, comparing
with its revenue.
LIQUIDITY: FAIR
l The current ratio of SC is maintained in a
normal level.
l SC’s quick ratio is maintained in a fairly
good level.
l The inventory of SC appears average.
l The accounts receivable of SC appears large.
l The short-term loans of SC appear large.
l SC’s revenue 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.
CONCLUSIONS
SC is considered medium-sized
in its line with fairly stable financial conditions. The large amount of
accounts receivable and short-term loans may be a threat to SC’s financial
condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.76 |
|
|
1 |
Rs.97.80 |
|
Euro |
1 |
Rs.69.91 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
ANK |
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.