MIRA INFORM REPORT
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Report No. : |
345457 |
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Report Date : |
20.10.2015 |
IDENTIFICATION DETAILS
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Name : |
YEKALON INDUSTRY INC. |
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Registered Office : |
1st-4th Floor, Haili Bldg., Wenjin Middle Road, Luohu District
Shenzhen, Guangdong Province 518003 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
17.04.1997 |
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Com. Reg. No.: |
440301103736049 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Subject is
engaged in importing and exporting building materials; decorative engineering construction. |
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No. of Employee : |
431 |
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
|
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
YEKALON INDUSTRY INC.
1ST-4TH FLOOR, HAILI BLDG., WENJIN MIDDLE ROAD, LUOHU DISTRICT
SHENZHEN, GUANGDONG PROVINCE 518003 PR CHINA
TEL: 86 (0) 755-25160926/21527645
FAX: 86 (0) 755-25419568
***Note: The (3rd
Floor, Flat - A, Jinxiu Building Wenjin Middle Road Shenzhen City P.R. China -
518003) is SC’s registered address, while SC is operating in the heading
address at present.
EXECUTIVE
SUMMARY
Date of Registration : APRIL 17, 1997
REGISTRATION NO. : 440301103736049
LEGAL FORM : Limited Liability Company
REGISTERED CAPITAL : CNY 5,000,000
staff : 431
BUSINESS CATEGORY : TRADING &
CONSTRUCTING
Revenue : CNY 506,230,000 (AS OF DEC. 31, 2014)
EQUITIES : CNY 165,550,000 (AS OF DEC. 31, 2014)
WEBSITE : www.yekalon.com.cn
E-MAIL : inquiry@yekalon.com
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 limited liabilities company of PRC with State Administration of Industry
& Commerce (SAIC) under registration No.: 440301103736049 on April 17, 1997.
SC’s Organization Code Certificate No.:
279327560
SC’s Tax No.: 440301279327560
SC’s registered capital: CNY 5,000,000
SC’s paid-in capital: CNY 5,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
|
Registration No. |
4403011014965 |
440301103736049 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
He Yixin |
90 |
|
He Yizhi |
5 |
|
He Qiongying |
5 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman and General
Manager |
He Yixin |
|
Supervisor |
He Yizhi |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
He Yixin 90
He Yizhi 5
He Qiongying 5
MANAGEMENT
He Yixin, Legal Representative, Chairman and General
Manager
-----------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 51
Ø Qualification:
University
Ø Working experience
(s):
From 1997 to present, working in SC as legal
representative, chairman and general manager
Also working in Hubei Yekalon Jiufangyuan Plate Materials Co., Ltd.,
Hubei Yekalon Wood Products Co., Ltd., Hubei Yekalon Forestry Science &
Technology Co., Ltd. (Literal Translation) and Shenzhen Sennorwell Building
Material Co., Ltd. as legal representative, etc
Supervisor
--------------
He Yizhi
BUSINESS
OPERATION
SC’s registered
business scope includes industry development (projects need to be reported for
authorization); domestic commerce; supplying and selling of commodities
(excluding the products privileged, prohibited or franchised); international
trade (according to Shenzhen Trade Management Review Certificate No. 1209th
trade on Foreign Trade Enterprise Approval Certificate); advertisement (managing
limited items after obtain permits); design and constructing for indoor and out
door decorative engineering (with permits).
SC is mainly
engaged in importing and exporting building materials; decorative engineering construction.
SC’s products mainly
include: floor, base material, stone material, ceramic tile, doors and windows,
hardware and copper tank, etc.
SC sources the products 100% from domestic market. SC sells 5% of its products in domestic market, and 95% 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:
==============
Roman Hermanos Y
Cia. Ltda.
Gyj Ferreterias
S.A.
Price Stone Inc.
J.A. Inversiones
Globales Ltda
TILE INTERNATIONAL
CORP.
Gmm Y
Derivados,S.A. De C.V.
Staff & Office:
--------------------------
SC is known
to have approx. 431 staff at
present.
SC rents an area
as its operating office, but the detailed information is unknown.
RELATED
COMPANY
SC is known to have following subsidiaries at present:
Hubei Yekalon Jiufangyuan Plate Materials Co., Ltd.
Hubei Yekalon Wood Products Co., Ltd.
Hubei Yekalon Forestry Science & Technology Co., Ltd.
Shenzhen Sennorwell Building Material Co., Ltd.
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, 2014 |
|
18,020 |
|
|
Short-term investment |
500 |
|
Notes receivable |
2,000 |
|
Accounts
receivable |
36,660 |
|
Advances to
suppliers |
28,890 |
|
Other receivable |
159,720 |
|
Inventory |
2,840 |
|
Non-current
assets within one year |
0 |
|
Other current
assets |
0 |
|
|
------------------ |
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Current assets |
248,630 |
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Long-term
investments |
182,010 |
|
Fixed assets |
9,800 |
|
Development
expenses |
1,480 |
|
Long-term
prepaid expenses |
0 |
|
Deferred income
tax assets |
0 |
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Other
non-current assets |
1,770 |
|
|
------------------ |
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Total assets |
443,690 |
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|
============= |
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Short-term loans |
28,000 |
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Notes payable |
11,480 |
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Accounts payable |
11,790 |
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Wages payable |
8,140 |
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Taxes payable |
1,120 |
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Advances from
clients |
72,490 |
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Other payable |
145,120 |
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Other current
liabilities |
0 |
|
|
------------------ |
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Current
liabilities |
278,140 |
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Non-current
liabilities |
0 |
|
|
------------------ |
|
Total
liabilities |
278,140 |
|
Equities |
165,550 |
|
|
------------------ |
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Total
liabilities & equities |
443,690 |
|
|
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2014 |
|
Revenue |
506,230 |
|
Cost of sales |
382,770 |
|
Sales expense |
82,840 |
|
Management expense |
22,590 |
|
Finance expense |
2,280 |
|
Investment
income |
50 |
|
Non-operating
income |
1,520 |
|
Non-operating expense |
50 |
|
Profit before
tax |
17,260 |
|
Less: profit tax |
910 |
|
16,350 |
Important Ratios
=============
|
|
As
of Dec. 31, 2014 |
|
*Current ratio |
0.89 |
|
*Quick ratio |
0.88 |
|
*Liabilities
to assets |
0.63 |
|
*Net profit
margin (%) |
3.23 |
|
*Return on
total assets (%) |
3.69 |
|
*Inventory /
Revenue ×365 |
2 days |
|
*Accounts
receivable/ Revenue ×365 |
26 days |
|
*Revenue/Total
assets |
1.14 |
|
*Cost of sales
/ Revenue |
0.76 |
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: AVERAGE
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears small.
l
The accounts receivable of SC is maintained in an
average level.
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 medium-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 |
|
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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 |
|
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.