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MIRA INFORM REPORT
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Report No. : |
498672 |
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Report Date : |
22.03.2018 |
IDENTIFICATION DETAILS
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Name : |
BEIJING HUAHUAN ELECTRONICS CO., LTD. |
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Registered Office : |
No. 26, Shangdi 6th Street, Haidian
District, Beijing 100085 PR |
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Country : |
China |
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Financials (as on) : |
30.06.2017 |
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Date of Incorporation : |
29.10.1992 |
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Com. Reg. No.: |
9111010860000278XK |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject includes manufacturing communication technology products and
accessories; technical development and technical service; manufacturing
computer hardware and software and peripheral equipment; engineering
technology consulting; selling its owned products, electronic products,
computers, software and auxiliary equipment; importing and exporting goods
and technology, import and export agents. |
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No. of Employees : |
488 |
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 : |
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
|
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 early 2015, 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 |
Beijing Huahuan Electronics Co., Ltd. |
|
CURRENT ADDRESS/ REGISTERED
ADDRESS |
No. 26, Shangdi 6th
Street, Haidian District, Beijing 100085 PR China |
|
TEL. NO. |
86 (0)
10-52046188*8203/52046366 |
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FAX NO. |
86 (0)
10-52046288 |
EXECUTIVE SUMMARY
Date of Registration : OCTOBER 29, 1992
UNIFIED SOCIAL CREDIT CODE : 9111010860000278XK
LEGAL FORM : shares limited company
REGISTERED CAPITAL : CNY 111,575,970
staff : 488
BUSINESS CATEGORY : MANUFACTURING & trading
REVENUE : CNY 75,928,000 (Consolidated, Jan. 1, 2017 to Jun. 30, 2017)
EQUITIES : CNY 158,593,000
(Consolidated, as of Jun. 30, 2017)
WEBSITE : www.huahuan.com
E-MAIL : support@huahuan.com
PAYMENT : REGULAR
MARKET CONDITION : average
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
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: 9111010860000278XK.
SC’s Import and Export Enterprise Code: 110060000278X
SC’s registered capital: CNY 111,575,970
SC’s paid-in capital: CNY 111,575,970
Registration Change Record:-
|
Date |
Change of Contents |
Before the
change |
After the change |
|
-- |
Registration No. |
002957 |
1100001179665 |
|
2000 |
Legal Form |
Limited Liabilities Company |
Shares Limited Company |
|
2004-7 |
Company Name |
Beijing Qinghua Huahuan Electronic Co.,
Ltd. |
Beijing Huahuan Electronics Co., Ltd. |
|
-- |
Registration No. |
1100001179665 |
110000001796657 |
|
2016-5 |
Legal
Representative |
Zhou Liye |
Ruan Fang |
|
Registration
No./ Unified
Social Credit Code |
110000001796657 |
9111010860000278XK |
|
|
2016-10-13 |
Registered Capital |
CNY 52,429,485 |
cny 104,858,970 |
|
2017-12-11 |
Registered Capital |
cny 104,858,970 |
CNY 111,575,970 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) (As of June 30,
2017) |
% of Shareholding |
|
Qingkong Venture Capital Co., Ltd. |
56.07 |
|
Beijing Shichuang High-tech Development
Co., Ltd. |
9.99 |
|
China Electronic System Technology Co.,
Ltd. |
4.73 |
|
Feng Zhongxi |
2.95 |
|
Ge Ning |
2.01 |
|
Wang Yichao |
2 |
|
Zhang Nan |
1.95 |
|
Man Chunyan |
1.93 |
|
Wu Shuiyin |
1.62 |
|
Ruan Fang |
1.44 |
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Other Shareholders |
15.31 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal
Representative, Chairman and General Manager |
Ruan Fang |
|
Deputy
General Manager |
Yang Bing |
|
Cai Huaiyu |
|
|
Huo Yan |
|
|
Zhou Baojian |
|
|
Sun Minghai |
|
|
Feng Xiaoming |
RECENT DEVELOPMENT
SC was listed on the new three board stock market, and the stock code is
430009.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
(As of June 30, 2017)
Qingkong Venture Capital Co., Ltd. 56.07
Beijing Shichuang High-tech Development Co.,
Ltd. 9.99
China Electronic System Technology Co., Ltd. 4.73
Feng Zhongxi 2.95
Ge Ning 2.01
Wang Yichao 2
Zhang Nan 1.95
Man Chunyan 1.93
Wu Shuiyin 1.62
Ruan Fang 1.44
Other Shareholders 15.31
Qingkong Venture
Capital Co., Ltd.
------------------------------------------------
Date of Registration: June 14, 2011
Unified Social Credit Code: 915404005768795807
Registered Capital: CNY 300,000,000
Beijing Shichuang
High-tech Development Co., Ltd.
--------------------------------------------------------------------
Date Of Registration: March 12, 1992
Unified Social Credit Code: 9111010810200570XL
Registered Capital: CNY 712,000,000
China Electronic
System Technology Co., Ltd.
--------------------------------------------------------------
Date of Registration: December 28, 1983
Unified Social Credit Code: 91110000100001553U
Registered Capital: CNY 500,000,000
MANAGEMENT
Ruan Fang, Legal Representative, Chairman and General
Manager
-----------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Nationality: China
Ø
Age: 55
Ø Working experience
(s):
At present, working in SC as legal
representative, chairman and general manager
Also
working in Beijing Huahuan Electronic Equipment Co., Ltd. and Huahuan (Tianjin)
Electronic Technology Co., Ltd. as legal representative
Deputy General
Manager
---------------------------------
Yang Bing
Cai Huaiyu
Huo Yan
Zhou Baojian
Sun Minghai
Feng Xiaoming
BUSINESS OPERATION
SC’s registered business scope includes manufacturing communication
technology products and accessories; technical development and technical
service; manufacturing computer hardware and software and peripheral equipment;
engineering technology consulting; selling its owned products, electronic
products, computers, software and auxiliary equipment; importing and exporting
goods and technology, import and export agents.
SC is mainly
engaged in manufacturing and selling communication technology products.
Brand: HUAHUAN
SC’s products
mainly include:
Enterprise gateway
EDD Ethernet
Demarcation Device
OAM Ethernet Over
Fiber
CE carrier-class
Ethernet transmission device
SDH+PCM integrated
multiplexer
SDH/MSTP
Multiplexer
Ethernet over
Fiber
Etc.
SC sources its materials 100% from domestic
market. SC sells 65% of its products in domestic market, and 35% to overseas
market, mainly U.S.A., Southeast Asia, etc.
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:
==============
Royal Telecom Rt S
A S
Asesoria En
Comunicaciones Asecones S.A.
Prime Solutions
Staff & Office:
--------------------------
SC is known
to have approx. 488 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 4
subsidiaries at present:
n
Beijing Huahuan Electronic Equipment Co., Ltd.
-----------------------------------
Date of Registration: June 19, 2009
Unified Social Credit Code: 911102286916950820
Registered Capital: CNY 5,900,000
n
Huahuan (Tianjin) Electronic Technology Co., Ltd.
------------------------------------------
Date of Registration: July 8, 2015
Unified Social Credit Code: 91120116341045514B
Registered Capital: CNY 5,000,000
n
Beijing Fanhao Technology Co., Ltd.
------------------------------------
Date of Registration: October 9, 2011
Registration No.: 110108014300711
Registered Capital: CNY 650,000
n
Beijing Hanchen Technology Co., Ltd.
------------------------------
Date of Registration: August 14, 2014
Unified Social Credit Code: 91110228306554292X
Chief Executive : He Rong
Registered Capital: CNY 35,710,000
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:
China
Construction Bank Beijing Shangdi Sub-branch
AC#:
11001045300056046394
FINANCIALS
Consolidated Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2016 |
As of Jun. 30, 2017 |
|
Cash |
53,602 |
28,615 |
|
Notes receivable |
89 |
0 |
|
Accounts receivable |
61,280 |
75,027 |
|
Advances to suppliers |
179 |
1,536 |
|
Other receivable |
269 |
1,712 |
|
Inventory |
60,047 |
69,185 |
|
Prepaid expenses |
0 |
0 |
|
Other current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
175,466 |
176,075 |
|
Long-term investment |
0 |
5,356 |
|
Fixed assets |
21,693 |
13,901 |
|
Construction in progress |
0 |
1,122 |
|
Intangible assets |
7,350 |
25,312 |
|
Development expenditure |
19,458 |
0 |
|
Long-term prepaid expenses |
0 |
0 |
|
Deferred income tax assets |
249 |
345 |
|
Other non-current assets |
0 |
561 |
|
|
------------------ |
------------------ |
|
Total assets |
224,216 |
222,672 |
|
|
============= |
============= |
|
Short-term loans |
25,000 |
24,400 |
|
Notes payable |
0 |
2,452 |
|
Accounts payable |
12,947 |
22,709 |
|
Payroll payable |
9,574 |
4,270 |
|
Taxes payable |
5,271 |
4,768 |
|
Advances from clients |
15,583 |
4,304 |
|
Other payable |
1,794 |
1,176 |
|
Accrued expenses |
0 |
0 |
|
Other current liabilities |
7 |
0 |
|
|
------------------ |
------------------ |
|
Current liabilities |
70,176 |
64,079 |
|
Non-current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total liabilities |
70,176 |
64,079 |
|
Equities |
154,040 |
158,593 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
224,216 |
222,672 |
|
|
============= |
============= |
Consolidated Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2016 |
Jan. 1, 2017 to
Jun. 30, 2017 |
|
Revenue |
193,974 |
75,928 |
|
Cost of sales |
117,735 |
50,734 |
|
Taxes and surcharges |
2,192 |
744 |
|
Sales expense |
27,110 |
14,268 |
|
Management expense |
43,500 |
31,247 |
|
Finance expense |
530 |
-242 |
|
Investment income |
0 |
25,138 |
|
Non-business income |
9,138 |
42 |
|
Non-business expenditure |
101 |
7 |
|
Profit before tax |
11,641 |
5,319 |
|
Less: profit tax |
1,341 |
766 |
|
Profits |
10,300 |
4,553 |
Important Ratios
=============
|
|
As of Dec. 31,
2016 |
As of Jun. 30,
2017 |
|
*Current ratio |
2.50 |
2.75 |
|
*Quick ratio |
1.64 |
1.67 |
|
*Liabilities to assets |
0.31 |
0.29 |
|
*Net profit margin (%) |
5.31 |
6.00 |
|
*Return on total assets (%) |
4.59 |
2.04 |
|
*Inventory / Revenue ×365/180 |
113 days |
165 days |
|
*Accounts receivable / Revenue ×365/180 |
116 days |
178 days |
|
*Revenue / Total assets |
0.87 |
0.34 |
|
*Cost of sales / Revenue |
0.61 |
0.67 |
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 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 fairly
good level.
l
SC’s quick ratio is maintained in a fairly good
level.
l
The inventory of SC appears large.
l
The accounts receivable of SC appears large.
l
The short-term loans of SC appear average.
l
SC’s revenue is in a fair level, comparing with the
size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is low.
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. The large amount of inventory and accounts receivable may be a
threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 65.22 |
|
|
1 |
INR 91.33 |
|
Euro |
1 |
INR 79.96 |
|
CNY |
1 |
INR 10.31 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
VIV |
|
|
|
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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.