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MIRA INFORM REPORT
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Report No. : |
494098 |
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Report Date : |
05.03.2018 |
IDENTIFICATION DETAILS
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Name : |
HUNAN KEMEIDA ELECTRIC CO., LTD. |
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Registered Office : |
No. 8 Kemeida Road, Economic And
Technological Development Zone, Yueyang, Hunan Province 414000 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2015 |
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Date of Incorporation : |
25.04.2005 |
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Credibility
Code : |
914306007744533296 |
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Legal Form : |
Shares Limited Co. |
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Line of Business : |
Subject registered business scope includes design,
production, sales, installation (with qualification certificate), maintenance
and service of computer electromagnetic stirring system, electromagnet and permanent
magnet complete sets of equipment, magnetic separation equipment,
metallurgical machinery and equipment, industrial automation and control
equipment, cable reel, clamp hanger and environmental protection equipment;
and sales of accessories and raw materials. |
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No. of Employees : |
455 |
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 |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Status : |
Satisfactory |
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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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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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
Hunan Kemeida Electric CO., LTD.
NO.
8 KEMEIDA ROAD, ECONOMIC AND TECHNOLOGICAL DEVELOPMENT ZONE, YUEYANG, HUNAN
PROVINCE 414000 PR CHINA
TEL: 86 (0) 730-8721955/8721960/8705803 FAX:
86 (0) 730-8722555
EXECUTIVE
SUMMARY
INCORPORATION DATE :
April 25, 2005
Credibility code :
914306007744533296
REGISTERED LEGAL FORM : Shares limited co.
CHIEF EXECUTIVE :
MR. liao zhiqiang (legal representative)
STAFF STRENGTH :
455
REGISTERED CAPITAL :
CNY 75,000,000
BUSINESS LINE :
design, MANUFACTURING, selling, service
TURNOVER :
cny 124,300,000 (AS OF dec. 31, 2015)
EQUITIES :
cny 304,840,000 (AS OF dec. 31, 2015)
PAYMENT :
SLOW BUT CORRECT
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRly stable (AS OF YEAR 2015)
OPERATIONAL TREND :
STEADY (AS OF YEAR 2015)
GENERAL REPUTATION :
AVERAGE
Adopted abbreviations:
ANS
- amount not stated
NS
- not stated
SC
- subject company (the company inquired by you)
NA
- not available
CNY
- China Yuan Ren Min Bi
SC
was registered as a Shares limited co. at local Administration for Industry
& Commerce (AIC - The official body of issuing and renewing business
license).
Company Status: Shares limited co. This form of business in PR China
is defined as a legal person. Its registered capital is divided into shares
of equal par value and the co. raises capital by issuing share certificates
by promotion or by public offer. Shareholders bear limited liability to the
extent of shareholding, and the co. is liable for its debts only to the
extent of its total assets. The co has independent property of legal person
and enjoys property rights of legal person. The characteristics of the
shares limited co. are as follows: The establishment of the co.
requires at least two promoters and no more than 200, half of whom shall be
domiciled in The minimum registered capital
of a co. is CNY The board of directors must
consist of five to nineteen directors. If the co. raises capital by
public offer, the promoters must not subscribe less than 35% of the total
shares. the promoters’ shares are restricted to transfer- within one year
of the offer. A state-owned enterprise that
is restructured into a shares limited co. must comply with the conditions
& requirements specified under the law & administrative rule.
SC’s registered business scope includes design, production, sales,
installation (with qualification certificate), maintenance and service of
computer electromagnetic stirring system, electromagnet and permanent magnet complete
sets of equipment, magnetic separation equipment, metallurgical machinery and
equipment, industrial automation and control equipment, cable reel, clamp
hanger and environmental protection equipment; and sales of accessories and raw
materials.
SC is mainly engaged in design, production and sales of
electromagnetic equipment, and providing related service.
Mr.
Liao Zhiqiang is legal representative, chairman and general manager of SC at
present.
SC is
known to have approx. 455 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the Economic and Technological Development Zone
of Yueyang. The detailed information of the area is unspecified.
http://www.kemeid.com/
The design is professional and the content is well organized. At present it is
in Chinese, English and other versions.
Email:
kmd@kemeid.com
The
other website: http://www.china-electromagnetic-stirrer.com/
Changes
of its registered information:
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Date of change |
Item |
Before the change |
After the change |
|
Unknown |
Registration no. |
430600000032053 |
914306007744533296 |
Import/
Export License Number: 4300774453329
HS
Code: 4306960063
For
the past two years there is no record of litigation.
MAIN
SHAREHOLDERS:
Name Amount
(CNY’0000) %
of Shareholding
Liao
Zhiqiang 3,295.5 43.94
Shenzhen Zhongnan Growth Investment
Partnership (Limited Partnership) 750 10.00
Suzhou Songhe Growth Venture Investment
Center (limited partnership) 318 4.24
He
Zailin 729 9.72
Yuan
Wenjian 349.5 4.66
Cao
Rongmei 349.5 4.66
Hu
Ping 274.5 3.66
Other
shareholders 1,434 19.12
Legal representative, chairman and general manager:
Mr.
Liao Zhiqiang, born in 1968. He
is currently responsible for the overall management of SC.
Working
Experience(s):
At
present Working in SC as
legal representative, chairman and general manager.
Also
working in Hunan Kemeida Heavy Industry Co., Ltd. and Hunan Xinci Machinery
Co., Ltd. as legal representative.
Directors:
Guo
Ping
Yuan
Wenjian
Yu
Huifeng
Zhou
Yueming
Etc.
Supervisors:
Hu
Ping
Ding
Fen
Zhang
Songbai
SC
is mainly engaged in design, production and sales of electromagnetic equipment,
and providing related service.
SC’s
products mainly include:
Lifting
electromagnet
Magnetic
Separator
Electromagnetic
stirrer
Cable
reel
Tong
Grabs
High
efficiency Con-casting Mould
Magnetic
Separator
Ferrous
metallurgical equipment
Equipment
for cement and mine
Other
equipment
SC
sources its materials 100% from domestic market. SC sells 70% of its products
in domestic market, and 30% to the 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.
Note:
SC refused to release its main suppliers and clients.
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Registration No. |
1913361 |
16877732 |
16877918 |
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Registration Date |
2003-01-14 |
2016-07-28 |
2016-09-14 |
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Trademark Design |
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Subsidiaries:
Hunan Kemeida Heavy Industry Co., Ltd.
=========================
Credibility
code: 91430600099864350A
Legal
representative: Liao Zhiqiang
Incorporation
date: 2014-4-23
Hunan
Xinci Machinery Co., Ltd.
=========================
Credibility
code: 91430602782894810Q
Legal
representative: Liao Zhiqiang
Incorporation
date: 2006-2-14
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 detailed information of the
banking.
Balance Sheet
Unit:
CNY’000
Income Statement
Unit:
CNY’000
Important Ratios
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As of Dec. 31, 2015 |
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*Current ratio |
2.40 |
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*Quick ratio |
1.89 |
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*Liabilities to assets |
0.38 |
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*Net profit margin (%) |
5.18 |
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*Return on total assets (%) |
1.31 |
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*Inventory /Turnover ×365 |
195 days |
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*Accounts receivable/Turnover ×365 |
361 days |
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*Turnover/Total assets |
0.25 |
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* Cost of goods sold/Turnover |
0.59 |
PROFITABILITY: FAIRLY GOOD
The
turnover of SC appears fairly good in its line.
SC’s
net profit margin is fairly good.
SC’s
return on total assets is average.
SC’s
cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
The
current ratio of SC is maintained in a fairly good level.
SC’s
quick ratio is maintained in a normal level.
The
inventory of SC appears fairly large.
The
accounts receivable of SC appears large.
The
short loan of SC appears average in 2015.
SC’s
turnover is in a poor level, comparing with the size of its total assets.
LEVERAGE: FAIRLY GOOD
The
debt ratio of SC is low.
The
risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable. (AS OF YEAR 2015)
SC
is considered medium-sized in its line with a development of 13 years. A credit
line up to moderate amount would appear to be within SC’s capacities.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 65.23 |
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|
1 |
INR 89.71 |
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Euro |
1 |
INR 79.50 |
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CNY |
1 |
INR 10.27 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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DIV |
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Report Prepared
by : |
TRU |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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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.