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MIRA
INFORM REPORT
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Report No. : |
491407 |
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Report Date : |
13.02.2018 |
IDENTIFICATION DETAILS
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Name : |
GUANGDONG XINBAO ELECTRICAL APPLIANCES HOLDINGS CO., LTD. |
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Registered Office : |
South Zhenghe Road, Leliu Town, Shunde
District, Foshan, Guangdong Province |
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Country : |
China |
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Financials (as on) : |
30.09.2017 |
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Date of Incorporation : |
11.12.1995 |
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Unified Social
Credit Code : |
91440000617653845D |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject registered business scope includes manufacturing and selling
electric steam iron, blender, coffee maker, boiler, toaster and other
electric home appliances, mould, electric motor, circuit plate and other
electric products parts, plastic products, engineering plastic, precise
die-casting fitting, designing products, mould and embedded software, service
of certification testing. |
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No. of Employees : |
20,624
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RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A++ |
|
Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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Status : |
Excellent |
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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
|
Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
|
China |
A2 |
A2 |
|
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.
|
Source
: CIA |
Company name & address
|
COMPANY NAME |
GUANGDONG XINBAO ELECTRICAL APPLIANCES HOLDINGS CO., LTD. |
|
CURRENT ADDRESS |
LONGZHOU ROAD, LELIU TOWN, SHUNDE DISTRICT,
FOSHAN, GUANGDONG PROVINCE 528322 PR CHINA |
|
REGISTERED
ADDRESS |
SOUTH ZHENGHE ROAD, LELIU TOWN, SHUNDE
DISTRICT, FOSHAN, GUANGDONG PROVINCE |
|
TEL. NO. |
86 (0) 757-25333888 |
|
FAX NO. |
86 (0) 757-25562533 |
EXECUTIVE SUMMARY
Date of Registration : DECEMBER 11, 1995
UNIFIED SOCIAL CREDIT CODE : 91440000617653845D
LEGAL FORM : SHARES LIMITED COMPANY
CHIEF EXECUTIVE : GUO JIANGANG (LEGAL
REPRESENTATIVE)
REGISTERED CAPITAL : CNY 813,437,768
staff : 20,624
BUSINESS CATEGORY : manufacturing & trading
REVENUE : CNY 6,176,034,000 (CONSOLIDATED,
JAN. 1, 2017 TO SEP. 30,
2017)
EQUITIES : CNY 3,665,147,000 (CONSOLIDATED,
AS OF SEP. 30, 2017)
WEBSITE : www.donlim.com
E-MAIL : xbgf@donlim.com
PAYMENT : Regular
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION : stable
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: 91440000617653845D.
SC’s registered capital: CNY 813,437,768
SC’s paid-in capital: CNY 813,437,768
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2000-12-20 |
Registered Capital |
HKD 7,866,000 |
HKD 8,896,000 |
|
2002-4-15 |
Registered Capital |
HKD 8,896,000 |
HKD 10,032,000 |
|
2002-6-28 |
Registered Capital |
HKD 10,032,000 |
HKD 39,328,000 |
|
2003-8-28 |
Legal Representative |
Guo Jianqiang |
Guo Jiangang |
|
2003-10-17 |
Registered Capital |
HKD 39,328,000 |
HKD 44,828,000 |
|
2003-12-19 |
Registered Capital |
HKD 44,828,000 |
HKD 83,145,900 |
|
2004-12-1 |
Registered Capital |
HKD 83,145,900 |
HKD 110,837,200 |
|
2005-7-25 |
Registered Capital |
HKD 110,837,200 |
HKD 115,543,500 |
|
2006-1-17 |
Registered Capital |
HKD 115,543,500 |
CNY 332,600,000 |
|
2007-9-18 |
Registered No. |
003538 |
440000400003206 |
|
2009-11-27 |
Registered Capital |
CNY 332,600,000 |
CNY 338,890,000 |
|
2010-1-7 |
Registered Capital |
CNY 338,890,000 |
CNY 366,001,200 |
|
2014-4-23 |
Registered Capital |
CNY 366,001,200 |
CNY 442,001,200 |
|
2016-7-25 |
Registered Capital |
CNY 442,001,200 |
CNY 574,601,560 |
|
2017-4-14 |
Registered Capital |
CNY 574,601,560 |
CNY 625,721,360 |
|
2017-6-16 |
Registered Capital |
CNY 625,721,360 |
CNY 813,437,768 |
|
-- |
Registration No./ Unified Social Credit Code |
440000400003206 |
91440000617653845D |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) (As of September 30, 2017) |
% of Shareholding |
|
Guangdong Donlim Kitchen Group Co., Ltd. |
42.43 |
|
Dong Ling Electrical Group Co., Limited |
25.06 |
|
Other Shareholders |
32.51 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman and General Manager |
Guo Jiangang |
|
Vice Chairman |
Guo Jianqiang |
|
CEO |
Zeng Zhanhui |
|
Vice CEO |
Wang Wei |
|
Zhu Xiaomei |
|
|
Yang Fangxin |
RECENT DEVELOPMENT
SC is a listed company in Shenzhen Stock Exchange Market with the code
of 002705.
SHAREHOLDER CHART & BACKGROUND
Name % of Shareholding
(As of September 30, 2017)
----------------------------------
Guangdong Donlim Kitchen Group Co., Ltd. 42.43
Dong Ling Electrical Group Co., Limited 25.06
Other Shareholders 32.51
Guangdong Donlim Kitchen Group Co., Ltd.
------------------------------------------------------------
Date of Registration: December 8, 1998
Unified Social Credit Code: 91440606712270316J
Chief Executive : Guo Jiangang
Registered Capital: CNY 80,644,000
Dong Ling Electrical Group Co. Limited (Hong Kong)
------------------------------------------------------------------------
CR.: 0583025
Company Status: Private
Active Status: Live
MANAGEMENT
Guo Jiangang,
Legal Representative and Chairman
------------------------------------------------------------------------------
Gender: M
Nationality: China
Age: 52
Working experience (s):
From 2003 to present, working in SC as legal representative and chairman
Also working in Guangdong Donlim Kitchen Group Co., Ltd. as legal
representative
Guo Jianqiang,
Vice Chairman
----------------------------------------------------
Gender: M
Nationality: China
Age: 50
Qualification: University
Working experience (s):
At present, working in SC as vice chairman
Also working in Guangdong Donlim Electrical Appliances Co., Ltd. as
legal representative
Zeng Zhanhui, CEO
--------------------------------------
Gender: M
Nationality: China
Age: 46
Qualification: EMBA
Working experience (s):
At present, working in SC as CEO
Vice CEO
-------------
Wang Wei
Zhu Xiaomei
Yang Fangxin
BUSINESS OPERATION
SC’s registered business scope includes manufacturing and selling
electric steam iron, blender, coffee maker, boiler, toaster and other electric
home appliances, mould, electric motor, circuit plate and other electric
products parts, plastic products, engineering plastic, precise die-casting
fitting, designing products, mould and embedded software, service of
certification testing.
SC is mainly engaged in manufacturing and selling
small household electric appliances.
Brand: ONLIM
SC’s products mainly include: electric kettle, coffee maker, bakery
machine, oven, toaster, electric iron, and etc.
SC sources its materials 70% from domestic market, and 30% from overseas
markets, mainly America. SC sells 10% of its products in domestic market, and
90% to overseas market, mainly U.S.A., European countries and America.
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.
*Major Customers*
==============
Jarden Corporation
Hamilton Beach Brands, Inc.
*Major suppliers*
=============
Zhejiang Hongbo Technology Co., Ltd.
Guangzhou Hanwa Trading Co., Ltd.
Staff &
Office:
--------------------------
SC is known to have approx. 20,624
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 and branches:
Guangdong Weilin Engineering Plastics Co., Ltd.
Guangdong Dongling Electrical Appliances Co., Ltd.
Chuzhou Dongling Electrical Appliances Co., Ltd.
Foshan City Shunde District Qingling Die-Cast Products Co., Ltd.
Foshan Shunde District Kehn Motor Co., Ltd.
Guangdong Kaihua Electric Appliance 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’s supplier refused to make any comments.
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:
Wing Hang Bank Foshan Sub-branch
AC#: 3401712158003
Shunde Rural Commercial Bank Leliu Xincheng Sub-branch
AC#: 06398800050789
FINANCIALS
Consolidated
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2015 |
As of Dec. 31,
2016 |
As of Sep. 30,
2017 |
|
1,066,642 |
839,451 |
2,342,066 |
|
|
Notes receivable |
30,496 |
67,451 |
45,433 |
|
Accounts receivable |
735,837 |
681,876 |
1,068,384 |
|
Advances to suppliers |
24,781 |
18,040 |
61,303 |
|
Interest receivable |
3,577 |
529 |
11,542 |
|
Other receivable |
20,335 |
28,516 |
23,400 |
|
Inventory |
739,310 |
962,923 |
811,746 |
|
Non-current assets within one year |
0 |
0 |
0 |
|
Other current assets |
285,290 |
887,349 |
178,944 |
|
|
------------------ |
------------------ |
------------------ |
|
Current assets |
2,906,268 |
3,486,135 |
4,542,818 |
|
Long-term equity investment |
19,750 |
36,795 |
57,088 |
|
Fixed assets |
1,266,378 |
1,399,500 |
1,678,487 |
|
Construction in progress |
98,439 |
139,669 |
51,988 |
|
Engineering materials |
0 |
0 |
0 |
|
Intangible assets |
265,168 |
255,104 |
252,084 |
|
Development expenditure |
0 |
0 |
0 |
|
Goodwill |
0 |
0 |
0 |
|
Long-term prepaid expenses |
22,571 |
24,216 |
29,754 |
|
Deferred income tax assets |
28,092 |
22,029 |
21,486 |
|
Other non-current assets |
23,003 |
71,680 |
77,410 |
|
|
------------------ |
------------------ |
------------------ |
|
Total assets |
4,629,669 |
5,435,128 |
6,711,115 |
|
|
============= |
============= |
============= |
|
Short-term loans |
108,981 |
0 |
132,738 |
|
Notes payable |
1,074,204 |
1,361,364 |
1,566,185 |
|
Accounts payable |
615,227 |
919,407 |
818,358 |
|
Advances from clients |
164,170 |
109,694 |
136,838 |
|
Payroll payable |
152,787 |
207,942 |
179,612 |
|
Tax payable |
44,989 |
58,253 |
78,080 |
|
Interest payable |
274 |
0 |
213 |
|
Dividends payable |
0 |
0 |
0 |
|
Other payable |
87,685 |
113,357 |
133,656 |
|
Other current liabilities |
7,627 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Current liabilities |
2,255,944 |
2,770,017 |
3,045,680 |
|
Non-current liabilities |
105 |
104 |
288 |
|
|
------------------ |
------------------ |
------------------ |
|
Total liabilities |
2,256,049 |
2,770,121 |
3,045,968 |
|
Equities |
2,373,620 |
2,665,007 |
3,665,147 |
|
|
------------------ |
------------------ |
------------------ |
|
Total liabilities & equities |
4,629,669 |
5,435,128 |
6,711,115 |
|
|
============= |
============= |
============= |
Consolidated
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2015 |
As of Dec. 31,
2016 |
From Jan. 1,
2017 to Sep. 30, 2017 |
|
Revenue |
6,307,516 |
6,985,341 |
6,176,034 |
|
Cost of sales |
5,144,976 |
5,578,982 |
4,934,267 |
|
Taxes and surcharges |
38,353 |
53,026 |
53,893 |
|
Sales expense |
280,524 |
297,614 |
237,709 |
|
Management expense |
540,006 |
592,992 |
479,761 |
|
Finance expense |
-63,329 |
-71,130 |
57,177 |
|
Investment income |
15,392 |
12,354 |
14,742 |
|
Non-operating income |
21,429 |
23,896 |
19,659 |
|
Non-operating expense |
7,486 |
15,240 |
3,621 |
|
Profit before tax |
369,727 |
559,145 |
436,499 |
|
Less: profit tax |
87,825 |
126,298 |
103,464 |
|
Profits |
281,902 |
432,847 |
333,035 |
Important Ratios
=============
|
|
As of Dec. 31,
2015 |
As of Dec. 31,
2016 |
As of Sep. 30,
2017 |
|
*Current ratio |
1.29 |
1.26 |
1.49 |
|
*Quick ratio |
0.96 |
0.91 |
1.23 |
|
*Liabilities to assets |
0.49 |
0.51 |
0.45 |
|
*Net profit margin (%) |
4.47 |
6.20 |
5.39 |
|
*Return on total assets (%) |
6.09 |
7.96 |
4.96 |
|
*Inventory / Revenue ×365/270 |
43 days |
51 days |
36 days |
|
*Accounts receivable / Revenue ×365/270 |
43 days |
36 days |
47 days |
|
*Revenue / Total assets |
1.36 |
1.29 |
0.92 |
|
*Cost of sales / Revenue |
0.82 |
0.80 |
0.80 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
The revenue of SC appears fairly good in its line.
SC’s net profit margin is fairly good.
SC’s return on total assets is fairly good.
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a normal level.
The inventory of SC appears average.
The accounts receivable of SC appears average.
SC has no short-term loans in 2016.
SC’s revenue is in an average level, comparing with the size of its
total assets.
LEVERAGE: FAIRLY
GOOD
The debt ratio of SC is average.
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Stable.
CONCLUSIONS
SC is considered large-sized in its line with stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 64.28 |
|
|
1 |
INR 89.02 |
|
Euro |
1 |
INR 78.93 |
|
CNY |
1 |
INR 10.16 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
TPT |
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.