MIRA
INFORM REPORT
|
Report Date : |
07.04.2011 |
IDENTIFICATION DETAILS
|
Name : |
LUOYANG TOP-BENEFIT MACHINERY CO. LTD |
|
|
|
|
Registered Office : |
|
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2009 |
|
|
|
|
Date of Incorporation : |
23.03.2006 |
|
|
|
|
Com. Reg. No.: |
410392100002977 |
|
|
|
|
Legal Form : |
Limited Liability Company. |
|
|
|
|
Line of Business : |
Manufacture and Sales of Glass Toughened Equipments. |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
60,000 Chinese Yuan |
|
Status : |
Moderate |
|
Payment Behaviour : |
Regular |
|
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 – December 31, 2010
|
Country Name |
Previous Rating (30.09.2010) |
Current Rating (31.12.2010) |
|
|
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
Company name
LUOYANG TOP-BENEFIT MACHINERY CO. LTD
Tel : 86 379 64283791
Fax 86 379
64283092
Website www.lydyjx.com
GTM ID G110330351
Currency in this report is
Chinese Yuan unless otherwise stated.
Exchange Rate: 1 USD=6.55
Chinese Yuan
"--"in this report
indicates "unavailable" due to insufficient information or "no
comments"
Note: the address provided in the order has been demolished,
and subject now is operated in the address listed in the report.
EXECUTIVE
SUMMARY
DATE OF Establishment : Mar 23rd, 2006
Aic Registration No. : 410392100002977
REGISTERED LEGAL
FORM : Limited Liability Company
REGISTERED CAPITAL : 1,000,000.00
Main BUSINESS : Manufacture And
Sales Of Glass Toughened Equipment
TURNOVER : 2297000.00 (As
Of 2009)
Net Profit : -68000.00 (As Of Dec.31th, 2009)
Total Assets : 1659000.00 (As Of
Dec.31th, 2009)
Net Worth : 813000.00 (As Of Dec.31th, 2009)
Employees :
30
Chief Executive :Yan Yumin
Import And Export
Permits : Yes
Base CREDIT
Limit :
60,000 Chinese Yuan
EXCHANGE RATE : 1 Usd=6.55 CNY Apr 6th,
2011)
Registered Address : Room 417, Floor 4, Tower A,
Huojuyuan,
Zip Code : 471033
Telephone : 86 379 64283719
Business Address :
Zip Code : 471033
Telephone : 86 379 64283791
Fax : 86 379 64283092
SIC Code (
REGISTRATION
|
Date of Establishment |
Mar 23rd, 2006 |
|
Registry |
Luoyang Administration Bureau of
Industry and Commerce – High-tech Development Zone Branch |
|
Legal Representative |
Yan Yumin |
|
AIC Registration Number |
410392100002977 |
|
Registered Legal Form |
limited
liability company |
|
Registered Capital |
1,000,000.00 |
|
Operating Period |
From Mar 23rd, 2006 to -- |
|
Business Scope |
Manufacture and sales of machinery
equipment and electronic products. Import and export of products and service. |
|
Changes in Registration |
1. June 27th, 2007 Subject’s registered address was
changed from 2. Apr 23rd, 2008 Subject’s registration No. was
changed from 4103002005243 to the present
registration No. |
Limited liabilities co.
This form of
business in PR China is defined as a legal person. Its registered capital is
contributed jointly by at least two shareholders and no more than fifty.
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 listed as follows:
-manufacturing
co. : RMB 500,000.00
-trading
&wholesaling co. : RMB 500,000.00
-retailing
co. : RMB 300,000.00
-consultancy &
service co. : RMB 100,000.00
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 50% of the registered capital
while contribution by intangible assets must not exceed 20% 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.
REGISTRATION INFO:
AVAILABLE
FINANCIAL REPORTS:
AVAILABLE
FIELD
INVESTIGATION
1. Subject’s income comes mainly from glass toughened equipments.
SC’s sales businesses are developed directly to the clients. SC mainly deals
with manufacture and sales of glass toughened equipment. The industry is
fiercely competitive. There are many similar companies in the local place as
competitors of Subject. However, with a short history and a small scale, SC’s
reputation in its industry still needs to be further promoted. Generally
speaking, SC’s competitiveness in the local industry is average.
2.
SHAREHOLDERS
AND SHARES
As indicated in the following table:
|
Shareholder |
Capital
Subscribed |
Percentage |
|
Yan Yumin |
400,000.00 |
40.00% |
|
Liu Anmin |
600,000.00 |
60.00% |
|
|
------ |
------ |
|
Total |
1,000,000.00 |
100% |
|
Shareholders |
Paid-up
Percentage |
Investment
Ways |
|
Yan Yumin |
100% |
Capital |
|
Liu Anmin |
100% |
Capital |
Background of major
shareholders
|
Name |
Yan
Yumin |
|
Gender |
Female |
|
Date
of Birth |
Oct 4th,
1970 |
|
ID NO. |
410305701004204 |
|
|
|
|
Name |
Liu
Anmin |
|
Gender |
Male |
|
Date
of Birth |
Dec 12th,
1970 |
|
ID NO. |
430104197012124311 |
MANAGEMENT
|
Name |
Yan Yumin |
|
Title |
Executive Director |
|
Gender |
Female |
|
ID No. |
410305701004204 |
|
Nationality |
|
|
Date of birth |
Oct 4th, 1970 |
NUMBER OF EMPLOYEES
Employees: 30
Recent
Recruitment：No
BANKERS INFORMATION
|
Bank Name |
China Construction Bank – |
|
Account for Foreign Currency |
41014224000220011208 |
|
Telephone of the person investigated |
86 379 63296620 |
|
Comment |
SC was confirmed to have opened an
account in this bank. The daily settlement is normal. |
OFFICE FACILITIES
Geographic Location: SC is located in
Property Ownership: rented
MAIN PRODUCTS & SERVICES
|
Main business |
Manufacture and sales of glass
toughened equipments |
|
Products and services |
SC majors in manufacture and
sales of glass toughened equipments. The products SC mainly deals with
include BG-style continuous circular toughened glass product line, reciprocating
alien glass molding toughened production line, mini bending glass toughened
equipment, homogeneous furnace, etc. |
SALES INFORMATION
|
Percentage of domestic sales |
60% |
|
Regions |
All over |
|
Major domestic clients |
|
|
Sales Terms: |
Prompt payment; on credit |
|
Percentage of overseas sales |
40% |
|
Regions |
|
|
Sales Terms: |
L/C, T/T |
|
SC’s products are mainly domestically.
Only a small part of them are sold to overseas countries. With a small scale,
SC’s sales channels still need to be further widened. |
|
|
The above information was
confirmed by SC’s employee |
|
PURCHASE INFORMATION
|
Main Commodities Purchased |
Steel products, etc. |
|
Number of Major Suppliers |
About 3 |
|
|
|
|
Main Terms of Payment |
Prompt payment; on credit |
|
SC’s steel products are mainly
purchased from |
|
|
The above information was confirmed
by SC’s employees |
|
CREDIT
SC’s employees confirmed that HANDAN IRON AND STEEL GROUP CO., LTD, etc. is one of its
suppliers. We contacted HANDAN IRON AND STEEL GROUP CO., LTD; the staff
couldn’t confirm whether SC is one of its clients since they have many clients
and distribution channels.
LITIGATION RECORDS
After checking with China court website, local court website and other major searching websites, no litigation records related to subject in the recent 3 years was found.
FINANCE
Balance Sheet (Unit: 1,000 Chinese
Yuan):
|
|
|
|
|
|
Current assets |
|
|
|
|
Money capital |
|
995 |
1,074 |
|
Short-term investment |
|
|
|
|
Notes receivable |
|
|
|
|
Net ball of Account Receivable |
|
30 |
-34 |
|
Payment in advance |
|
35 |
89 |
|
Subsidy Receivable |
|
|
|
|
Other Account Receivable |
|
|
|
|
Inventory |
|
301 |
261 |
|
Other current assets |
|
|
|
|
Export rebates receivable |
|
|
|
|
Total current Assets |
- |
1,361 |
1,390 |
|
Long-term investment |
|
|
|
|
Long-term investment |
|
|
|
|
Original value of fixed assets |
|
324 |
269 |
|
Accumulated depreciation |
|
|
|
|
Net fixed assets |
0 |
324 |
269 |
|
Fixed assets depreciation reserve |
|
|
|
|
Net Value of Fixed Assets |
0 |
324 |
269 |
|
Fixed assets in liquidation |
|
|
|
|
Projects being constructed |
|
|
|
|
Fixed assets losses in suspense |
|
|
|
|
Total fixed assets |
0 |
324 |
269 |
|
Intangible assets and deferred assets |
|
|
|
|
Intangible assets |
|
|
|
|
Deferred assets |
|
|
|
|
Total intangible and deferred assets |
- |
- |
|
|
Other long-term assets |
|
|
|
|
Other long-term assets |
|
|
|
|
Total assets |
1,039 |
1,685 |
1,659 |
|
Current liabilities |
|
|
|
|
Short-term loans |
|
|
|
|
Notes payable |
|
|
|
|
Account payable |
|
88 |
88 |
|
Deposit received |
|
232 |
280 |
|
Other accounts payable |
|
480 |
480 |
|
Wages payable |
|
|
|
|
Welfare payable |
|
|
|
|
Tax unpaid |
|
3 |
-2 |
|
Unpaid profit |
|
|
|
|
Accrued expenses |
|
|
|
|
L/T debt due in 1 year |
|
|
|
|
Other current liabilities |
|
|
|
|
Total current liabilities |
0 |
803 |
846 |
|
L/T liabilities |
|
|
|
|
L/T loans |
|
|
|
|
Bonds payable |
|
|
|
|
L/T account payable |
|
|
|
|
Total L/T liabilities |
0 |
0 |
0 |
|
Deferred tax |
|
|
|
|
Deferred tax |
|
|
|
|
Total liabilities |
35 |
803 |
846 |
|
Owner’s interest |
|
|
|
|
Paid-up capital |
|
1,000 |
1,000 |
|
Contributed surplus |
|
|
|
|
Surplus reserves |
|
|
|
|
Unconfirmed investment loss |
|
|
|
|
Undistributed profits |
|
-118 |
-187 |
|
Minority interest |
|
|
|
|
Total owner’s interest |
1,004 |
882 |
813 |
|
Liabilities and owner’s interest |
1,039 |
1,685 |
1,659 |
Income Statement (Unit: 1,000):
|
|
2007 |
2008 |
2009 |
|
Main business income |
528 |
952 |
2,297 |
|
Main business cost |
|
823 |
1,906 |
|
Tax and associate charge |
|
2 |
|
|
Main business profit |
528 |
127 |
391 |
|
Other business profit |
|
|
|
|
Operation expenses |
|
|
|
|
- management expenses |
|
203 |
444 |
|
Financial expenses |
|
|
|
|
Operation profit |
528 |
-76 |
-53 |
|
Investment profit |
|
|
|
|
Subsidy income |
|
|
|
|
Non business income |
|
|
|
|
- non business expenses |
|
|
|
|
Prior year income adjustment |
|
|
|
|
Total profit |
4 |
-76 |
-53 |
|
- income tax |
1 |
11 |
15 |
|
Minority stock holder’s interest |
|
|
|
|
Net profit |
3 |
-87 |
-68 |
Important Ratios:
|
|
2007 |
2008 |
2009 |
|
Return on net assets (%)
|
0.30
|
-9.86
|
-8.36
|
|
Return on total assets (%) |
0.29
|
-5.16
|
-4.10
|
|
Net profit margin (%) |
0.57
|
-9.14
|
-2.96
|
|
Turnover of total assets |
0.51
|
0.56
|
1.38
|
|
Turnover of current assets |
-- |
0.70
|
1.65
|
|
Turnover of accounts receivable |
-- |
31.73
|
-67.56
|
|
Inventory turnover |
-- |
2.73
|
7.30
|
|
Asset liability ratio (%) |
3.37
|
47.66
|
50.99
|
|
Current ratio |
-- |
1.69
|
1.64
|
|
Quick ratio |
-- |
1.32
|
1.33
|
Major Financial Information
|
|
2007 |
2008 |
2009 |
|
Main business income |
528 |
952 |
2,297 |
|
Total profit |
4 |
-76 |
-53 |
|
Net profit |
3 |
-87 |
-68 |
|
Total assets |
1,039 |
1,685 |
1,659 |
|
Total liabilities |
35 |
803 |
846 |
|
Total owner’s interest |
1,004 |
882 |
813 |
|
Source from |
government |
government |
government |
|
Whether audited or not |
Yes |
Yes |
Yes |
Analysis of Financial Indicators
We mainly analyze Subject’s
indicators in 2009. All of SC’s profitability indicators are all negative which
indicates that SC’s profitability is poor. SC’s turnover of total assets and
turnover of current assets indicate that its capital operation ability is OK.
SC’s asset liability ratio which is in reasonable range indicates that its
long-term solvency is average. In addition, SC’s current ratio and quick ration
show that its short-term solvency is good.
INDUSTRY
PROFILE
Industry
SIC Code (
Description: It
refers to manufacture of machine tools and production special equipments which are
used for producing and processing of glass products, glass utensils,
chinawares, enamelwares products etc.
Status
Quo & Trend
With the continuous development of national economy and the increasing demand of infrastructure, the industryof special equipment manufacture has been developing quickly after reform and opening up policy, especially from 2003. The average annual growth rate exceeded 25%. In 2008, the growth rate of this industry decreased due to the influence of international financial crisis. But with the expanding domestic demand strategy, this industry went into a golden development period. From January to February in 2010, the large-scale enterprises in this industry realized a sales income of 230 billions, increasing 36% year/year: an accumulative total profit of 13.7 billions, increasing 80% year/year.
As the global financial crisis risk still exists now and protective trade policies in many countries arise again, domestic competition is becoming fierce. These all bring challenges to this industry. However, the government provides a series of supporting policies in technology, equipment, capital, corporate merger and acquisition, etc. This industry is supposed to continue its fast developing trend in the coming years and its development future is bright.
GENERAL
COMMENTS
Subject company is a Limited
Liability Company established in March, 2006. SC mainly deals with the
manufacture and sales of glass toughen equipments. With a short history and a
small business scale, SC’s fame and influence power in its industry still need
to be further promoted.
SC’s
existing financial data show that its main business income in 2009 increased a
lot compared with that of 2008. That indicates that SC’s business development
status is good. However, SC’s net profit is negative which indicates that its
profitability still needs to be further promoted. SC has enough money capitals
in 2009 which is favorable to its capital turnover. SC had many inventories in
recent years which adds its pressure of capital turnover and decreased its
capital operation ability. In addition, its long-term solvency is average and
short-term solvency is strong.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.20 |
|
|
1 |
Rs.72.24 |
|
Euro |
1 |
Rs.63.09 |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
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 |
-- |
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.