MIRA INFORM REPORT
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Report No. : |
351210 |
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Report Date : |
25.11.2015 |
IDENTIFICATION DETAILS
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Name : |
NINGBO QISHUAI ELECTRICAL
APPLIANCE CO., LTD. |
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Registered Office : |
Cidong Industry
Area, Cixi City, Zhejiang Province, 315300 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
11.06.2003 |
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Com. Reg. No.: |
330282000009472 |
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Legal Form : |
Limited
Liabilities Company |
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Line of Business : |
Subject is engaged in manufacturing, processing and selling electrical
appliance. |
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No. of Employee : |
500 |
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 : |
Slow but correct |
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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. 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 for the first time in
modern history. Still, China's per capita income is below the world average.
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
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 also 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 QISHUAI ELECTRICAL APPLIANCE CO.,
LTD.
CIDONG INDUSTRY
AREA, CIXI CITY, ZHEJIANG PROVINCE, 315300 PR CHINA
TEL: 86 (0)
574-63711204 FAX: N/A
EXECUTIVE
SUMMARY
INCORPORATION DATE : JUNE 11, 2003
REGISTRATION NO. : 330282000009472
REGISTERED LEGAL
FORM : LIMITED LIABILITIES
COMPANY
CHIEF
EXECUTIVE : MR. QIU PENGJUN (CHAIRMAN)
STAFF STRENGTH : 500
REGISTERED CAPITAL :
CNY 20,000,000
BUSINESS LINE :
MANUFACTURING, PROCESSING & TRADING
TURNOVER : CNY
251,430,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY 26,270,000 (AS OF DEC. 31, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION
: FAIRLY STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.3878 =
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
Note: SC’s correct name should be the heading one.
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 11, 2003.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders
contribute its registered capital jointly. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to extent of its total assets. The characteristics of this form
of co. are as follows: Upon the establishment of the
co., an investment certificate is issued to the each of shareholders. The board of directors is
comprised of three to thirteen members. The minimum registered capital
for a co. is CNY 30,000. Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology. Cash contributed by all
shareholders must account for at least 30% of the registered capital. Existing shareholders have
pre-exemption right to purchase shares of the co. offered for sale by the
other shareholders and to subscribe for the newly increased registered
capital of the co.
SC’s registered business scope includes manufacturing and processing
washing machine, refrigerator, freezer, dehydrator, electric fans, water
dispenser, water purifier, disinfection cabinet, fume machines, water heaters, dishwashers,
vacuum cleaners, plastic products, hardware accessories, rubber products, power
lines, motors, wiring harness; warehousing services; general cargo transport;
importing and exporting commodities and technology, excluding the items
prohibited or limited by the country.
SC is mainly engaged in manufacturing, processing
and selling electrical appliance.
Mr. Qiu Pengjun has been legal
representative, chairman and general manager of SC since 2012.
SC is known to have approx. 500 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. SC’s employee refused to release the detailed information
of the premise.
http://www.qishuai.com/ The design is professional
and the content is well organized. At present it is in both Chinese and English
versions.
SC has passed ISO 9001,
ISO 14001
Changes of its
registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
Registration no. |
3302822006129 |
Present one |
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Registered capital |
CNY 2,000,000 |
CNY 5,000,000 |
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|
2008-9-19 |
Registered capital |
CNY 5,000,000 |
CNY 10,000,000 |
|
2009-12-22 |
Registered capital |
CNY 10,000,000 |
Present amount |
|
2012-8-27 |
Legal representative |
Present one |
Tax Registration Certificate No.: 330282750363935
See below for SC as executive party (defendant).
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Executed Party |
SC |
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Court |
Ningbo Haishu District People's Court |
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Date of Case |
2009-08-18 |
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Case Number |
(2009) 00034 |
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Claim Amount |
RMB 810,750 |
Remark: Due to the lack of information, we are unable to provide the
cause of action, judgment or other information.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Gong Yinqi 60
Legal
representative, chairman and general manager:
Mr. Qiu Pengjun is currently responsible for the overall management of
SC.
Working
Experience(s):
From 2012 to present Working in SC as legal
representative, chairman and general manager.
Supervisor:
Wang Qiong
SC is mainly engaged in manufacturing, processing and selling electrical
appliance.
SC’s products mainly include:
Full-automatic washing machine
Twin-tub washing machine
Single-tub washing machine
Front Loading washing machine
SC sources its materials 95% from domestic market, and 5% from overseas
market. SC sells 95% of its products in domestic market, and 5% 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 refused to release its main suppliers and clients.
Partners: according to SC’s website
=================================
Electrolux, Cady, SKG, Jinling, QiSheng, Changhong, Konka, etc.
|
Registration No. |
6797374 |
12703583 |
6188774 |
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Registration Date |
2010-4-7 |
2014-10-21 |
2010-3-7 |
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Trademark Design |
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SC is not known to have any subsidiary at present.
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 declined to release its banking details.
Balance
Sheet
Unit: CNY’000
|
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As of Dec. 31,
2014 |
|
Cash & bank |
38,350 |
|
33,020 |
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Accounts
receivable |
93,160 |
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Bills receivable |
34,000 |
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Other Accounts receivable |
4,210 |
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Advances to suppliers |
12,970 |
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To be apportioned expense |
12,950 |
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Other current assets |
0 |
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------------------ |
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Current assets |
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Fixed assets net value |
75,720 |
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Projects under construction |
13,600 |
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Long-term investment |
0 |
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Long-term deferred expense |
2,030 |
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Intangible and other assets |
33,130 |
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------------------ |
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Total assets |
353,140 |
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============= |
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Short loans |
183,530 |
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Accounts payable |
64,890 |
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Advance from customers |
-260 |
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Other Accounts payable |
560 |
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Notes payable |
70,000 |
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Accrued payroll |
1,140 |
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Taxes payable |
1,480 |
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Dividend payable |
5,380 |
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Other current liabilities |
150 |
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------------------ |
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Long term liabilities |
0 |
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Other liabilities |
0 |
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Total liabilities |
326,870 |
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Equities |
|
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------------------ |
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Income
Statement
Unit: CNY’000
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As of Dec. 31,
2014 |
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Cost of goods
sold |
206,750 |
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Sales expense |
17,800 |
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Management expense |
21,020 |
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Finance expense |
4,450 |
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Profit before tax |
1,000 |
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Less: profit tax |
250 |
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Profits |
Important
Ratios
=============
|
|
As of Dec. 31,
2014 |
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*Current ratio |
0.70 |
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*Quick ratio |
0.60 |
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*Liabilities to assets |
0.93 |
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*Net profit margin (%) |
0.30 |
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*Return on total assets (%) |
0.21 |
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*Inventory /Turnover ×365 |
48 days |
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*Accounts receivable/Turnover ×365 |
136 days |
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*Turnover/Total assets |
0.71 |
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* Cost of goods sold/Turnover |
0.82 |
PROFITABILITY:
AVERAGE
The turnover of SC appears fairly good in its line.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a fair level.
SC’s quick ratio is maintained in a fair level.
The inventory of SC is maintained in an average level.
The accounts receivable of SC is fairly large.
SC’s short-term loan is large in 2014.
SC’s turnover is in a fair level, comparing with the size of its total
assets.
LEVERAGE: FAIR
The debt ratio of SC is high.
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 and short loans could be a threat to
SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.38 |
|
|
1 |
Rs.100.45 |
|
Euro |
1 |
Rs.70.55 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
ANK |
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 |
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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 |
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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 |
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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 |
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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.