MIRA INFORM REPORT
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Report No. : |
345749 |
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Report Date : |
20.10.2015 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
No. 8 Xingyuan Road, Rucheng Industrial Park, Rucheng Town, Rugao City,
Jiangsu Province, 226500 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
11.04.2002 |
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Com. Reg. No.: |
320600400005301 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
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No. of Employees : |
300 |
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 : |
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
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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.
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Source
: CIA |
Company
Name and address
NANTONG HORNBY
ELECTRONICS CO., LTD.
NO. 8 XINGYUAN ROAD, RUCHENG INDUSTRIAL PARK,
RUCHENG TOWN,
RUGAO CITY, JIANGSU PROVINCE, 226500 PR
CHINA
TEL: 86 (0) 513-68662222/68665566
EXECUTIVE
SUMMARY
INCORPORATION DATE :
APRIL 11, 2002
REGISTRATION NO. : 320600400005301
REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED ENTERPRISE
CHIEF EXECUTIVE : MR. ZHANG
CHUNLAI张春来 (LEGAL REPRESENTATIVE)
STAFF STRENGTH : 300
REGISTERED CAPITAL : USD 7,700,000
BUSINESS LINE :
MANUFACTURING & TRADING
TURNOVER : CNY 129,500,000
(AS OF DEC. 31, 2014)
EQUITIES : CNY 81,970,000 (AS OF DEC. 31, 2014)
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE : CNY 6.3571 = 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 wholly foreign-owned enterprise at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on April 11, 2002.
Company Status: Wholly
foreign-owned enterprise This form of business in PR China is defined as a legal
person. It is a limited co. established within the territories of PR China
with capital provided totally by the foreign investors. More than one
foreign investor may jointly invest in a wholly foreign-owned enterprise.
The investing party/parties solely exercise management, reap profit and
bear risks and liabilities by themselves. This form of companies usually
have a limited duration is extendible upon approval of Examination and
Approval Authorities.
SC’s registered
business scope includes manufacturing and selling various types of chip diodes,
bridge rectifiers, automobile rectifier, and new electronic components. (with
permit if needed)
SC is mainly
engaged in manufacturing & selling various kinds of diodes and other
related products.
Mr. Zhang Chunlai is legal representative of SC at present.
SC is known to have
approx. 300 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 Rucheng town. The
detailed information of the premise is unspecified.
http://www.hornby.com.cn/
This website belongs to Hornby Electronic, the design is professional and the
content is well organized. At present it is in both Chinese and English
versions.
Email: lynlxy@vip.sina.com
No significant changes were found during our
checks with the local Administration for Industry and Commerce.
Organization code: 737071858
There is no litigation record of SC for the past two years.
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Hornby Electronic
Company Limited (HK) 100
CR No.: 0525943
Company Type: Private Company limited by
shares
Date of Incorporation: 1995-9-19
l
Legal representative and chairman:
Mr. Zhang Chunlai is currently responsible for the overall management of
SC.
Working Experience(s):
At present Working in SC as legal
representative and chairman.
l
General manager:
Mr. Tang Weizhong is currently responsible for the daily management of
SC.
Working Experience(s):
At present Working in SC as general manager.
l
Directors:
Jiang Yuhua
Zhang Wei
l
Supervisor:
Huang Rongquan
SC is mainly
engaged in manufacturing & selling various kinds of diodes and other
related products.
SC’s products
mainly include: LED products, diode products, semiconductor materials,
semiconductor equipment, etc.
SC sources its materials from domestic
market and overseas market. SC sells its products in domestic market and
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 major clients and suppliers.
Shenzhen Hornby Electronics Co., Ltd.
==============================
Registration
number: 440306104499859
Legal
representative: Zhang Xu
Incorporation
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.
N/A
Balance Sheet
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Unit:
CNY’000 |
As of Dec. 31, 2014 |
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Cash
& bank |
14,030 |
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Inventory |
44,990 |
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Notes
receivable |
4,130 |
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Accounts
receivable |
32,620 |
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Advanced
to suppliers |
700 |
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Other
accounts receivable |
9,610 |
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|
------------------ |
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Current assets |
106,080 |
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Fixed
assets net value |
16,020 |
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Total
intangible and other assets |
2,200 |
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------------------ |
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Total
assets |
124,300 |
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=========== |
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Short
loans |
0 |
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Accounts
payable |
31,250 |
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Accounts
advanced from customers |
970 |
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Taxes
payable |
-200 |
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Other
accounts payable |
360 |
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Notes
payable |
9,950 |
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------------------ |
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Current
liabilities |
42,330 |
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Long
term liabilities |
0 |
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------------------ |
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Total
liabilities |
42,330 |
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Equities |
81,970 |
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------------------ |
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Total
liabilities & equities |
124,300 |
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=========== |
Income Statement
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Unit:
CNY’000 |
As of Dec. 31, 2014 |
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Turnover |
129,500 |
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Cost of goods
sold |
115,250 |
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Taxes and additional of main operation |
300 |
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Sales expense |
2,200 |
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Management expense |
9,650 |
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Finance expense |
-720 |
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Non-operating
income |
120 |
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Profit
before tax |
2,940 |
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Less:
profit tax |
770 |
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Profits |
2,170 |
Important Ratios
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|
As of Dec. 31,
2014 |
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*Current ratio |
2.51 |
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*Quick ratio |
1.44 |
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*Liabilities to assets |
0.34 |
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*Net profit margin (%) |
1.68 |
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*Return on total assets (%) |
1.75 |
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*Inventory /Turnover ×365 |
127 days |
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*Accounts receivable/Turnover ×365 |
92 days |
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*Turnover/Total assets |
1.04 |
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* Cost of goods sold/Turnover |
0.89 |
PROFITABILITY: AVERAGE
l
The turnover of SC appears fairly good.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of goods sold is in an average level.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a fairly
good level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears fairly large.
l
SC’s accounts receivable is fairly large.
l
SC has no short term loan in 2014.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: FAIRLY GOOD
l
The debt ratio of SC is low.
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 fairly large amount of inventory and accounts receivable could be a threat to its financial condition.
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
: |
KAS |
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Report Prepared
by : |
NIT |
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 |
|
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
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.