MIRA INFORM REPORT
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Report No. : |
339720 |
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Report Date : |
03.09.2015 |
IDENTIFICATION DETAILS
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Name : |
ANHUI YINGFA
ELECTRONICS CO., LTD. |
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Registered Office : |
Tianyang Road, Qinlan Town, Tianchang, Anhui Province, 239341 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
06.06.2003 |
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Com. Reg. No.: |
341181000014224 |
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Legal Form : |
Limited Liabilities Co. |
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Line of Business : |
Manufacturing and Selling of Electronic Components. |
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No. of Employees : |
250 |
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
|
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
ANHUI YINGFA
ELECTRONICS CO., LTD.
TIANYANG ROAD,
QINLAN TOWN, TIANCHANG,
ANHUI PROVINCE,
239341 PR CHINA
TEL: 86 (0)
550-7815919 FAX: 86 (0) 550-7815989
EXECUTIVE
SUMMARY
INCORPORATION DATE : JUN. 6, 2003
REGISTRATION NO. : 341181000014224
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
STAFF STRENGTH : 250
REGISTERED CAPITAL : CNY 10,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER : CNY 25,710,000
(AS OF DEC. 31, 2014)
EQUITIES : CNY 4,360,000 (AS OF DEC. 31, 2014)
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION :
FAIR
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.2037 = 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 Limited liabilities
co. at local Administration for Industry & Commerce (AIC - The official
body of issuing and renewing business license) on Jun. 6, 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 processing, manufacture and sales of
electronic and electrical appliances and components; sales of hardware and
electrical appliances, rubber and plastic products, building materials,
decoration materials (excluding hazardous chemicals); R&D, manufacture,
processing and sales of solar wafers, solar cells, solar lights, solar
photovoltaic power generation equipment and components; design, manufacture,
sales and installation service of electrombile battery charger, electric
vehicle charging equipment; general cargo (with a valid operating permit);
import and export of goods and technology (excluding those prohibited and
limited by the state) (if needed with permit).
SC is mainly
engaged in manufacturing and selling electronic components.
Ms. Luo Baoying is legal representative, general manager and
executive director of SC at present.
SC is known to
have approx. 250 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 Tianchang.
Our checks reveal that SC owns the total premise, but SC’s accountant refused
to release the gross area.
http://www.yingfa.com/ The website belongs to Yingfa Group. It
includes the information about SC and other related companies. The design is professional
and the content is well organized. At present the web site is in Chinese and
English versions.
For the past two years there is no record of litigation.
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the
change |
After the change |
|
Unknown |
Registered no. |
3411812309160 |
Present one |
Subject passed the
annual inspection of 2012 with Administration for Industry & Commerce.
Organization Code:
750961417
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Luo Baoying 54
Zhang Min 6
Zhang Fayu 40
l Legal
representative, General Manager and Executive Director:
Ms. Luo Baoying, ID# 34232119630304xxxx, born in 1963 with university
education. She is currently responsible for the overall and daily management of
SC.
Working Experience(s):
At present Working in SC as legal
representative, general manager and executive director.
l
Supervisor:
Zhang Min
SC is mainly
engaged in manufacturing and selling electronic components.
SC’s products mainly
include: color FBT transformer, LCD, POP adapter, etc.
SC sources its materials
100% from domestic market. SC sells 30% of its products in domestic market and
70% to overseas market.
The buying terms of SC include Check, T/T 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 declined to
release its major suppliers and clients.
According to the website:
Shanghai
Pudong Yingfa Electronic Co., Ltd.
=================================
Incorporation Date: May 21, 1998
Registration No.: 310115000463789
Registered Legal Form: Limited
Liabilities Company
Shanghai
Shengchang Tianhua Electronics Co., Ltd.
=================================
Incorporation Date: 1993-01-19
Registration No.: 310000400034365
Registered Legal Form: Limited
Liabilities Company
Etc.
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’s accountant
refused to release the bank details.
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2014 |
As
of Dec. 31, 2013 |
|
Cash & bank |
25,270 |
5,150 |
|
Inventory |
15,740 |
11,690 |
|
Accounts
receivable |
24,780 |
26,120 |
|
Subsidy
receivable |
0 |
470 |
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Advances to
suppliers |
870 |
790 |
|
Other
receivables |
19,160 |
23,460 |
|
Note receivables |
0 |
30 |
|
Other current
asset |
850 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
86,670 |
67,710 |
|
Fixed assets net
value |
10,650 |
12,750 |
|
Projects under
construction |
480 |
0 |
|
Long term
investment |
35,000 |
35,000 |
|
Intangible and
other assets |
100 |
70 |
|
|
------------------ |
------------------ |
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Total assets |
132,900 |
115,530 |
|
|
=========== |
=========== |
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Short loan |
64,000 |
46,000 |
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Accounts payable |
4,940 |
6,590 |
|
Taxes payable |
-160 |
-20 |
|
Other accounts
payable |
38,440 |
52,420 |
|
Note payable |
21,320 |
3,650 |
|
|
------------------ |
------------------ |
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Current
liabilities |
128,540 |
108,640 |
|
Long term
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Total
liabilities |
128,540 |
108,640 |
|
Equities |
4,360 |
6,890 |
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|
------------------ |
------------------ |
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Total
liabilities & equities |
132,900 |
115,530 |
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=========== |
=========== |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31,
2014 |
As of Dec. 31,
2013 |
|
Turnover |
25,710 |
33,580 |
|
Cost of goods
sold |
26,550 |
33,910 |
|
Taxes and additional of main operation |
120 |
140 |
|
Sales expense |
610 |
960 |
|
Management expense |
2,920 |
3,450 |
|
Finance expense |
2,530 |
3,330 |
|
Investment
income |
4,120 |
1,260 |
|
Profit from
other operations |
0 |
-150 |
|
Non-operating
income |
580 |
80 |
|
Non-operating expense |
10 |
40 |
|
Profit before
tax |
-2,330 |
-7,060 |
|
Less: profit tax |
0 |
0 |
|
Profits |
-2,330 |
-7,060 |
Important
Ratios
=============
|
|
As
of Dec. 31, 2014 |
As
of Dec. 31, 2013 |
|
*Current ratio
|
0.67 |
0.62 |
|
*Quick ratio |
0.55 |
0.52 |
|
*Liabilities
to assets |
0.97 |
0.94 |
|
*Net profit
margin (%) |
-9.06 |
-21.02 |
|
*Return on
total assets (%) |
-1.75 |
-6.11 |
|
*Inventory
/Turnover ×365 |
224 days |
128 days |
|
*Accounts
receivable/Turnover ×365 |
352 days |
284 days |
|
*Turnover/Total
assets |
0.19 |
0.29 |
|
* Cost of goods
sold/Turnover |
1.03 |
1.01 |
PROFITABILITY:
FAIR
l The turnover of SC appears average in its line in both years.
l SC’s net profit
margin is poor in 2013, but fair in 2014.
l SC’s return on total
assets is fair in both years.
l
SC’s cost of goods sold is high in both years.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair
level in both years.
l
SC’s quick ratio is maintained in a fair level in
both years.
l
The inventory of SC appears large in both years.
l
The accounts receivable of SC is large in both
years.
l
SC’s short loans are large in both years.
l
SC’s turnover is in a poor level, comparing with
the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is high in both years.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fair.
SC is considered medium-sized in its line with fair financial conditions.
The large amount of inventory, accounts receivable and short loans could be a
threat to SC’s financial situation.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.16 |
|
|
1 |
Rs.101.21 |
|
Euro |
1 |
Rs.74.61 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
ASH |
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 |
|
|
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 |
-- |
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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.