MIRA INFORM REPORT
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Report No. : |
345580 |
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Report Date : |
20.10.2015 |
IDENTIFICATION DETAILS
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Name : |
GOSPELL DIGITAL TECHNOLOGY CO.,
LTD. |
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Registered Office : |
Gospell Industrial Park,
Bailutang, Suxian District, Chenzhou Hunan Province 423000 Pr |
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Country : |
China |
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Financials (as on) : |
30.06.2014 |
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Date of Incorporation : |
23.08.2001 |
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Com. Reg. No.: |
431000000003362 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject is
mainly engaged in manufacturing and selling digital TV hardware and software
products. |
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No. of Employees : |
1,564 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
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 – 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. 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
GOSPELL DIGITAL TECHNOLOGY CO.,
LTD.
GOSPELL INDUSTRIAL PARK,
BAILUTANG, SUXIAN DISTRICT, CHENZHOU
HUNAN PROVINCE 423000 PR CHINA
TEL: 86 (0) 735-2666666
FAX: 86 (0) 735-2666888
EXECUTIVE
SUMMARY
Date of Registration : august 23, 2001
REGISTRATION NO. : 431000000003362
LEGAL FORM : Shares limited company
REGISTERED CAPITAL : CNY
125,350,000
staff : 1,564
BUSINESS CATEGORY : MANUFACUTRING
& TRADING
REVENUE : CNY 441,397,000 (FROM JAN. 1, 2014 TO JUN.
30, 2014)
EQUITIES : CNY 498,386,000
(AS OF JUN. 30, 2014)
WEBSITE : N/A
E-MAIL : N/A
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.32 = 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 shares limited company of PRC with State Administration of Industry &
Commerce (SAIC) under registration No.: 431000000003362
on August 23, 2001.
SC’s Organization Code Certificate No.:
73051245-4
SC’s registered capital: CNY 125,350,000
SC’s paid-in capital: CNY 125,350,000
Registration Change Record:-
No significant changes of SC have been noted
in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Liu Tanai |
37.19 |
|
Ma Gang |
3.26 |
|
You Zongjie |
2.59 |
|
Other Shareholders |
56.96 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal
Representative and Chairman |
Liu Tanai |
|
General
Manager |
You Zongjie |
|
Director |
Shi Xunxi |
|
Wang Hao |
|
|
Liu Wei |
|
|
Qian Qiang |
|
|
Wang Chun |
|
|
Lei Hong |
|
|
Shen Xianfeng |
|
|
Ma Gang |
|
|
Chen Xiaowen |
|
|
Xie Yonghong |
|
|
Supervisor |
Liu Chunbao |
|
Liu Bingyu |
|
|
Chen Fan |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Liu Tanai 37.19
Ma Gang 3.26
You Zongjie 2.59
Other Shareholders 56.96
MANAGEMENT
Liu Tanai, Legal Representative and Chairman
-------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 52
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal
representative and chairman, also working in Chengdu Chitong Digital System
Co., Ltd. as legal representative
You
Zongjie, General Manager
----------------------------------------------------
Ø
Gender: M
Ø
Age: 49
Ø Qualification: University
Ø Working experience
(s):
At present, working in SC as general
manager
Director
-----------
Shi Xunxi
Wang Hao
Liu Wei
Qian Qiang
Wang Chun
Lei Hong
Shen Xianfeng
Ma Gang
Chen Xiaowen
Xie Yonghong
Supervisor
--------------
Liu Chunbao
Liu Bingyu
Chen Fan
BUSINESS
OPERATION
SC’s registered business scope includes researching,
manufacturing and selling digital TV set-top boxes, tuner, satellite TV
receiving antenna and receiver, digital TV front-end equipment, digital TV
software products, cable television network, TV transmitters, microwave
multi-channel distribution system equipment, radio and television transmission
equipment, digital user information network terminal products, network systems
integration, satellite communications terminal products, microwave active and
passive components, electronic components
SC is mainly
engaged in manufacturing and selling digital TV hardware and software products.
Brand: GOSPELL
SC’s products mainly
include: digital TV set-top boxes, tuner, satellite TV receiving antenna and
receiver, digital TV front-end equipment, digital TV software products, cable
television network, TV transmitters, etc.
SC sources its materials 100% from domestic market. SC sells 75% of its products in domestic market, and 25% to overseas market, mainly USA, Europe, Mid East, Southeast Asia, etc.
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*
==============
Fierce Capital,
S.A.
Tramitacion
Aduanera Y Servicios Conexos Sa De Cv
Staff & Office:
--------------------------
SC is known
to have approx. 1,564 staff
at present.
SC owns an area as
its operating office and factory, but the detailed information is unknown.
RELATED COMPANY
SC
is known to have 5 subsidiaries and 4 branches at present:
Chenzhou
Xipoint Digital Technology Co., Ltd.
Anhui
Guangxing Beier Digital Technology Co., Ltd.
Chenzhou
Gongtian Electronic Ceramic Technology Co., Ltd.
Chengdu
Chitong Digital System Co., Ltd.
Gospell
Digital Technology India Co., Ltd.
Gospell
Digital Technology Co., Ltd. Shenzhen Branch
Gospell
Digital Technology Co., Ltd. Puning Branch
Gospell
Digital Technology Co., Ltd. Chengdu Branch
Gospell
Digital Technology Co., Ltd. Qingyuan Branch
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, 2013 |
As of Jun. 30, 2014 |
|
100,449 |
134,669 |
|
|
Notes receivable |
3,453 |
1,895 |
|
Accounts receivable |
462,263 |
468,167 |
|
Advances to suppliers |
8,788 |
6,431 |
|
Other receivable |
9,479 |
15,689 |
|
Inventory |
106,400 |
117,320 |
|
Non-current assets within one year |
593 |
0 |
|
Other current assets |
4,633 |
9,983 |
|
|
------------------ |
------------------ |
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Current assets |
696,058 |
754,154 |
|
Long-term investment |
14,700 |
29,972 |
|
Fixed assets |
129,459 |
123,427 |
|
Construction in progress |
0 |
1,260 |
|
Intangible assets |
17,824 |
17,597 |
|
Long-term prepaid expenses |
0 |
0 |
|
Deferred income tax assets |
6,343 |
6,924 |
|
Other non-current assets |
17,300 |
14,497 |
|
|
------------------ |
------------------ |
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Total assets |
881,684 |
947,831 |
|
|
============= |
============= |
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Short-term loans |
60,000 |
70,000 |
|
Notes payable |
28,446 |
46,018 |
|
Accounts payable |
185,376 |
215,513 |
|
Wages payable |
14,886 |
9,550 |
|
Taxes payable |
13,693 |
4,088 |
|
Advances from clients |
24,012 |
21,025 |
|
Other payable |
12,484 |
14,352 |
|
Other current liabilities |
70,128 |
68,186 |
|
|
------------------ |
------------------ |
|
Current liabilities |
409,025 |
448,732 |
|
Non-current liabilities |
600 |
713 |
|
|
------------------ |
------------------ |
|
Total liabilities |
409,625 |
449,445 |
|
Equities |
472,059 |
498,386 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
881,684 |
947,831 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2013 |
From Jan. 1, 2014 to Jun. 30, 2014 |
|
Revenue |
996,484 |
441,397 |
|
Cost of sales |
757,564 |
336,126 |
|
Sales expense |
77,051 |
31,824 |
|
Management expense |
71,175 |
34,425 |
|
Finance expense |
13,719 |
2,402 |
|
Non-business income |
8,639 |
2,434 |
|
Non-business expenditure |
617 |
14 |
|
Profit before tax |
65,385 |
30,116 |
|
Less: profit tax |
7,656 |
3,794 |
|
57,729 |
26,322 |
Important Ratios
=============
|
|
As of Dec. 31, 2013 |
As of Jun. 30, 2014 |
|
*Current ratio |
1.70 |
1.68 |
|
*Quick ratio |
1.44 |
1.42 |
|
*Liabilities to assets |
0.46 |
0.47 |
|
*Net profit margin (%) |
5.79 |
5.96 |
|
*Return on total assets (%) |
6.55 |
2.78 |
|
*Inventory / Revenue ×365/180 |
39 days |
48 days |
|
*Accounts receivable/ Revenue ×365/180 |
170 days |
191 days |
|
*Revenue/Total assets |
1.13 |
0.47 |
|
*Cost of sales / Revenue |
0.76 |
0.76 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIRLY GOOD
l The revenue of SC
appears fairly good in its line.
l SC’s net profit
margin is fairly good.
l SC’s return on
total assets is fairly good.
l
SC’s cost of sales is average, comparing with its
revenue.
LIQUIDITY: AVERAGE
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 is maintained in an average
level.
l
The accounts receivable of SC appears large.
l
SC’s short-term loans are in an average level.
l
SC’s revenue is in an average 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 large-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.82 |
|
|
1 |
Rs.100.12 |
|
Euro |
1 |
Rs.73.75 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
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.