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MIRA INFORM REPORT
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Report No. : |
490546 |
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Report Date : |
08.02.2018 |
IDENTIFICATION DETAILS
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Name : |
OPPEIN HOME GROUP
INC. |
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Registered Office : |
Oppein Industrial Zone, Guanghua 3rd Road, Baiyun District, Guangzhou, Guangdong
Province 510450 PR |
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Country : |
China |
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Financials (as on) : |
30.09.2017 |
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Date of Incorporation : |
01.07.1994 |
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Unified Social Credit Code : |
91440101617404697C |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject includes manufacturing wood furniture, bamboo and rattan
furniture, metal furniture, plastic furniture, and other furniture;
processing sawn wood, wood, single board, and other wood; furniture wholesale;
furniture design service; furniture installation; furniture and related items
repair; furniture retailing; home kitchen appliances manufacturing; kitchen
appliances and daily necessities retail and wholesale; wholesale household
appliances; household appliances repair; home accessories wholesale; building
materials, decorative materials wholesale; import and export of goods and
technology; manufacturing home refrigeration appliances, household air
conditioners, household ventilation appliances, household cleaning
appliances, health care appliances, household appliances accessories, other
household appliances, gas, solar and similar energy household appliances,
other non-power household appliances , Electric light source, lighting
fixtures, electrical appliances and other lighting appliances, bedding,
towels products, curtains, fabric products, wooden doors and windows, stairs,
and floors; other warehousing; handling; road transport agents; packing,
loading and unloading, transportation services agency; logistics services
agency; warehousing services; construction stone processing; manufacturing
artificial super-hard materials, machine grinding stone, polished stone,
super-hard materials abrasive; wholesale of sanitary toilet equipment and
appliances, lamps, decorative items, chemical products; manufacturing metal
kitchen appliances, commercial, catering, and service equipment; software
services; software wholesale; software testing services; software
development; software retail; consumer lighting retail; selling its owned
products; interior design services. |
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No. of Employees : |
15,349 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A+ |
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Credit Rating |
Explanation |
Rating Comments |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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
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Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
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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 Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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. China has implemented reforms in a gradualist fashion, resulting in efficiency gains that have contributed to a more than tenfold increase in GDP since 1978. Reforms began with the phaseout 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 continues to pursue an industrial policy, state support of key sectors, and a restrictive investment regime. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, China in 2016 stood as the largest economy in the world, surpassing the US in 2014 for the first time in modern history. China became the world's largest exporter in 2010, and the largest trading nation in 2013. Still, China's per capita income is below the world average.
After keeping its currency tightly linked to the US dollar for years, China in July 2005 moved to an exchange rate system that references a basket of currencies. From mid-2005 to late 2008, the renminbi appreciated more than 20% against the US dollar, but the exchange rate remained virtually pegged to the dollar from the onset of the global financial crisis until June 2010, when Beijing announced it would allow a resumption of gradual liberalization. From 2013 until early2015, the renminbi (RMB) appreciated roughly 2% against the dollar, but the exchange rate fell 13% from mid-2015 until end-2016 amid strong capital outflows in part stemming from the August 2015 official devaluation; in 2017 the RMB resumed appreciating against the dollar – roughly 7% from end-of-2016 to end-of-2017. From 2013 to 2017, China had one of the fastest growing economies in the world, averaging slightly more than 7% real growth per year. In 2015, the People’s Bank of China announced it would continue to carefully push for full convertibility of the renminbi, after the currency was accepted as part of the IMF’s special drawing rights basket. However, since late 2015 the Chinese Government has strengthened capital controls and oversight of overseas investments to better manage the exchange rate and maintain financial stability.
The Chinese Government faces numerous economic challenges including: (a) reducing its high domestic savings rate and correspondingly low domestic household consumption; (b) managing its high corporate debt burden to maintain financial stability; (c) controlling off-balance sheet local government debt used to finance infrastructure stimulus; (d) facilitating higher-wage job opportunities for the aspiring middle class, including rural migrants and college graduates, while maintaining competitiveness; (e) dampening speculative investment in the real estate sector without sharply slowing the economy; (f) reducing industrial overcapacity; and (g) raising productivity growth rates through the more efficient allocation of capital and state-support for innovation. Economic development has progressed further in coastal provinces than in the interior, and by 2016 more than 169.3 million migrant workers and their dependents had relocated to urban areas to find work. One consequence of China’s population control policy known as the “one-child policy” - which was relaxed in 2016 to permit all families to have two children - 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 urbanization. The Chinese Government is seeking to add energy production capacity from sources other than coal and oil, focusing on natural gas, nuclear, and clean energy development. In 2016, China ratified the Paris Agreement, a multilateral agreement to combat climate change, and committed to peak its carbon dioxide emissions between 2025 and 2030.
The government's 13th Five-Year Plan, unveiled in March 2016, emphasizes the need to increase innovation and boost domestic consumption to make the economy less dependent on government investment, exports, and heavy industry. However, China has made more progress on subsidizing innovation than rebalancing the economy. Beijing has committed to giving the market a more decisive role in allocating resources, but the Chinese Government’s policies continue to favor state-owned enterprises and emphasize stability. Chinese leaders in 2010 pledged to double China’s GDP by 2020, and the 13th Five Year Plan includes annual economic growth targets of at least 6.5% through 2020 to achieve that goal. 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. Chinese leaders also have undermined some market-oriented reforms by reaffirming the “dominant” role of the state in the economy, a stance that threatens to discourage private initiative and make the economy less efficient over time. The slight acceleration in economic growth in 2017—the first such uptick since 2010—gives Beijing more latitude to pursue its economic reforms, focusing on financial sector deleveraging and its Supply-Side Structural Reform agenda, first announced in late 2015.
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Source
: CIA |
Company
name and address
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COMPANY NAME |
Oppein Home Group Inc. |
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CURRENT ADDRESS/ REGISTERED
ADDRESS |
Oppein Industrial Zone, Guanghua 3rd Road,
Baiyun District, Guangzhou, Guangdong Province 510450 PR China |
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TEL. NO. |
86 (0) 18820025250/20-36733813 |
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FAX NO. |
86 (0) 20-36733643 |
EXECUTIVE
SUMMARY
Date
of Registration : july
1, 1994
Unified
social credit code : 91440101617404697C
LEGAL
FORM : SHARES LIMITED COMPANY
REGISTERED
CAPITAL : CNY 420,596,464
staff : 15,349
BUSINESS
CATEGORY : manufacturing &
trading
REVENUE :
CNY 6,903,482,000 (Consolidated, Jan. 1, 2017 to Sep. 30, 2017)
EQUITIES :
CNY 6,129,593,000 (Consolidated, as of Sep. 30, 2017)
WEBSITE : www.oppein.com
E-MAIL : cgddb@oppein.com
PAYMENT
:
REGULAR
MARKET
CONDITION :
COMPETITIVE
FINANCIAL
CONDITION : fairly
good
OPERATIONAL
TREND : FAIRLY STEADY
GENERAL
REPUTATION : FAIRLY
GOOD
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 shares limited company
of PRC with State Administration of Industry & Commerce (SAIC) under
Unified Social Credit Code: 91440101617404697C.
SC’s Import and Export Enterprise Code: 4401617404697
SC’s registered capital:
CNY 420,596,464
SC’s paid-in capital: CNY
420,596,464
Registration
Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2017-7-3 |
Registered
Capital |
CNY 373,581,112 |
CNY 415,091,112 |
|
2017-8-14 |
Registered
Capital |
CNY 415,091,112 |
CNY 420,596,464 |
|
2015-8-3 |
Registration No./ Unified Social Credit Code |
440101000002519 |
91440101617404697C |
Current Co
search indicates SC’s shareholders & chief executives are as follows:-
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Name of Shareholder (s) (As of Sep. 30, 2017) |
% of Shareholding |
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Yao Liangsong |
68.47 |
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Yao Liangbo |
8.76 |
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Hongxing Xizhao Investment Co., Ltd. |
4.43 |
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Ganzhou Tianou Investment Partnership (Limited Partnership) |
1.88 |
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Beijing Zhongtian Jiye Investment Management Co., Ltd. |
0.84 |
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Other Shareholders |
15.62 |
SC’s Chief
Executives:-
|
Position |
Name |
|
Legal Representative, Chairman and General
Manager |
Yao Liangsong |
|
Deputy General Manager |
Tan Qinxing |
|
Yao Liangbo |
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|
Yang Yaoxing |
RECENT
DEVELOPMENT
SC is a listed company
in Shanghai Stock Exchange Market with the code of 603833.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
(As of Sep. 30, 2017)
----------------------------
Yao Liangbo 8.76
Hongxing Xizhao Investment Co., Ltd. 4.43
Ganzhou Tianou Investment Partnership (Limited Partnership) 1.88
Beijing Zhongtian Jiye Investment Management Co., Ltd. 0.84
Other Shareholders 15.62
Hongxing Xizhao Investment Co., Ltd.
-----------------------------------------------
Date
of Registration: December 12, 2013
Unified
Social Credit Code: 915400910646873156
Registered
Capital: CNY 100,000,000
MANAGEMENT
Yao Liangsong,
Legal Representative, Chairman and General Manager
-------------------------------------------------------------------------------------------------------
Ø Gender: M
Ø Nationality: China
Ø Age: 54
Ø Qualification: University
Ø Working experience
(s):
At present, working in SC as legal representative,
chairman and general manager
Tan Qinxing, Deputy General Manager
--------------------------------------------------------------
Ø Gender: M
Ø Nationality: China
Ø Age: 54
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as deputy general
manager
Yao Liangbo,
Deputy General Manager
--------------------------------------------------------------
Ø Gender: M
Ø Nationality: China
Ø Age: 49
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as deputy general
manager
Yang Yaoxing, Deputy General Manager
----------------------------------------------------------------
Ø Gender: M
Ø Nationality: China
Ø Age: 54
Ø Working experience
(s):
At present, working in SC as deputy general
manager
BUSINESS
OPERATION
SC’s registered business scope includes
manufacturing wood furniture, bamboo and rattan furniture, metal furniture,
plastic furniture, and other furniture; processing sawn wood, wood, single
board, and other wood; furniture wholesale; furniture design service; furniture
installation; furniture and related items repair; furniture retailing; home
kitchen appliances manufacturing; kitchen appliances and daily necessities
retail and wholesale; wholesale household appliances; household appliances
repair; home accessories wholesale; building materials, decorative materials
wholesale; import and export of goods and technology; manufacturing home
refrigeration appliances, household air conditioners, household ventilation
appliances, household cleaning appliances, health care appliances, household
appliances accessories, other household appliances, gas, solar and similar
energy household appliances, other non-power household appliances , Electric
light source, lighting fixtures, electrical appliances and other lighting
appliances, bedding, towels products, curtains, fabric products, wooden doors
and windows, stairs, and floors; other warehousing; handling; road transport
agents; packing, loading and unloading, transportation services agency;
logistics services agency; warehousing services; construction stone processing;
manufacturing artificial super-hard materials, machine grinding stone, polished
stone, super-hard materials abrasive; wholesale of sanitary toilet equipment
and appliances, lamps, decorative items, chemical products; manufacturing metal
kitchen appliances, commercial, catering, and service equipment; software
services; software wholesale; software testing services; software development;
software retail; consumer lighting retail; selling its owned products; interior
design services.
SC is mainly engaged in manufacturing and selling furniture.
Brand: Oppein
SC’s products mainly include: kitchen
cabinet, wardrobe, wooden door, bathroom cabinet, etc.
SC sources its materials 100% from domestic
market. SC sells 90% of its products in domestic market, and 10% 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.
*Major Customers*
==============
Yunyi Real Estate (Qinhuangdao) Co., Ltd.
Poly Real Estate Group Co., Ltd.
Zhuhai Jinrong Real Estate Development Co.,
Ltd.
Staff
& Office:
--------------------------
SC is known to have approx. 15,349 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
the following subsidiaries at present,
Guangdong Tuoling Investment Industry Co., Ltd.
Meizhou Oppein Investment Industry Co., Ltd.
Oppein Union (Tianjin) Home Sales Co., Ltd.
Jiangsu Wuxi Oupai Integrated Household Co., Ltd.
Etc.
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 records 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
Basic Bank:
Agricultural
Bank of China Guangzhou Jiangcun Sub-branch
AC#: 44068101040000874
FINANCIALS
Consolidated
Balance Sheet
|
Unit:
CNY’000 |
As of Dec. 31, 2016 |
As of Sep. 30, 2017 |
|
1,145,432 |
3,144,039 |
|
|
Accounts
receivable |
129,456 |
268,709 |
|
Notes
receivable |
7,215 |
27,867 |
|
Advances to
suppliers |
77,238 |
341,451 |
|
Other receivable |
34,057 |
74,643 |
|
Inventory |
756,942 |
717,639 |
|
Non-current
assets within one year |
0 |
0 |
|
Other
current assets |
48,572 |
34,010 |
|
|
------------------ |
------------------ |
|
Current
assets |
2,198,912 |
4,608,358 |
|
Financial assets
available for sale |
1,015 |
1,015 |
|
Investment
property |
0 |
0 |
|
Fixed
assets |
1,542,914 |
1,622,506 |
|
Construction
in progress |
570,091 |
1,183,808 |
|
Project
materials |
0 |
0 |
|
Intangible
assets |
1,024,726 |
1,018,105 |
|
Deferred income
tax assets |
32,669 |
43,707 |
|
Other
non-current assets |
178,100 |
536,094 |
|
|
------------------ |
------------------ |
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Total
assets |
5,548,427 |
9,013,593 |
|
|
============= |
============= |
|
Short-term
loans |
103,443 |
100,005 |
|
Notes payable |
216,377 |
190,884 |
|
Accounts
payable |
472,549 |
691,827 |
|
Payroll
payable |
264,790 |
155,652 |
|
Taxes
payable |
134,917 |
117,527 |
|
Interest
payable |
0 |
0 |
|
Advances
from clients |
1,079,794 |
1,172,075 |
|
Dividend
payable |
0 |
0 |
|
Other
payable |
264,767 |
346,672 |
|
Non-current
liabilities due within one year |
0 |
0 |
|
Other
current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
2,536,637 |
2,774,642 |
|
Non-current
liabilities |
128,933 |
109,358 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
2,665,570 |
2,884,000 |
|
Equities |
2,882,857 |
6,129,593 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
5,548,427 |
9,013,593 |
|
|
============= |
============= |
Consolidated
Income Statement
|
Unit:
CNY’000 |
As of Dec.
31, 2016 |
Jan. 1,
2017 to Sep. 30, 2017 |
|
Revenue |
7,134,131 |
6,903,482 |
|
Cost of sales |
4,526,809 |
4,474,391 |
|
Business Taxes and Surcharges |
71,317 |
66,622 |
|
Sales expense |
815,912 |
734,938 |
|
Management expense |
653,039 |
596,902 |
|
Finance expense |
9,483 |
-7,785 |
|
Asset impairment loss |
9,161 |
78 |
|
Investment
income |
353 |
203 |
|
Non-operating
income |
58,161 |
19,012 |
|
Non-operating expense |
4,036 |
1,275 |
|
Profit
before tax |
1,121,854 |
1,099,096 |
|
Less:
profit tax |
178,447 |
155,215 |
|
943,407 |
943,881 |
Important Ratios
=============
|
|
As of Dec. 31, 2016 |
As of Sep. 30, 2017 |
|
*Current ratio |
0.87 |
1.66 |
|
*Quick ratio |
0.57 |
1.40 |
|
*Liabilities to assets |
0.48 |
0.32 |
|
*Net profit margin (%) |
13.22 |
13.67 |
|
*Return on total assets (%) |
17.00 |
10.47 |
|
*Inventory / Revenue ×365/270 |
39 days |
29 days |
|
*Accounts receivable / Revenue ×365/270 |
7 days |
11 days |
|
*Revenue / Total assets |
1.29 |
0.77 |
|
*Cost of sales / Revenue |
0.63 |
0.65 |
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 appears average.
l The accounts receivable of SC appears
average.
l The short-term loans of SC appear average.
l SC’s revenue 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 low.
Overall financial condition of the SC:
Fairly Good.
CONCLUSIONS
SC is considered
large-sized in its line with fairly good financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 64.14 |
|
|
1 |
INR 89.50 |
|
Euro |
1 |
INR 79.43 |
|
CNY |
1 |
INR 10.21 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
PRA |
|
|
|
|
Report Prepared
by : |
NIT |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.