MIRA INFORM REPORT
|
Report Date : |
25.07.2011 |
IDENTIFICATION DETAILS
|
Name : |
JIANGSU TIANGONG TOOLS COMPANY LIMITED |
|
|
|
|
Registered Office : |
Qianxiang Village, Houxiang Town, Danyang,
Jiangsu Province 212312 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2010 |
|
|
|
|
Date of Incorporation : |
07.07.1997 |
|
|
|
|
Com. Reg. No.: |
321181400004628 |
|
|
|
|
Legal Form : |
Wholly Foreign-Owned Enterprise |
|
|
|
|
Line of Business : |
manufacturing and Selling Tools, Cutting Tools and measure tools |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 8,000,000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment
Behaviour : |
No Complaints |
|
|
|
|
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 – March 31st, 2011
|
Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
|
China |
a2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
Company name & address
JIANGSU TIANGONG TOOLS COMPANY LIMITED
QIANXIANG VILLAGE,
HOUXIANG TOWN, DANYANG
JIANGSU PROVINCE
212312 PR CHINA
TEL: 86 (0)
511-86312333/86322124
FAX: 86 (0)
511-86322038
EXECUTIVE SUMMARY
Date of Registration : JULY 7, 1997
REGISTRATION NO. : 321181400004628
LEGAL FORM : WHOLLY FOREIGN-OWNED ENTERPRISE
REGISTERED CAPITAL : CNY 844,300,000
staff :
3,000
BUSINESS CATEGORY : manufacturing
Revenue :
CNY 1,976,180,000 (AS OF DEC. 31, 2010)
EQUITIES :
CNY 1,658,100,000 (AS OF DEC. 31, 2010)
WEBSITE : www.tiangong-tools.com
E-MAIL :
zhihe_zhu@tiangong-tools.com;
rongnian_lu@tiangong-tools.com
PAYMENT :
AVERAGE
Recommended Credit Limit: UP TO USD 8,000,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly
good
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.45 = USD 1
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 a wholly foreign-owned enterprise of PRC with State Administration of
Industry & Commerce (SAIC) under registration No.: 321181400004628 on July 7, 1997.
SC’s Organization Code Certificate No.:
134795523
SC’s registered capital: CNY 844,300,000
SC’s paid-in capital: CNY 844,300,000
Registration Change Record:
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Registration No. |
000668 |
321181400004628 |
|
-- |
Shareholder |
China Tiangong Company Limited (B.V.I.) |
China Tiangong (Hong Kong) Company Limited |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
China Tiangong (Hong Kong) Company Limited |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and
General Manager |
Zhu Xiaokun |
|
Directors: |
Zhu Xingyuan |
|
Yan Ronghua |
|
|
Wu Suojun |
|
|
Jiang Rongjun |
|
|
Tong Guizhi |
|
|
Supervisors: |
Zhu Hedi |
|
Zhu Xingguo |
RECENT DEVELOPMENT
SC has got the certificate of Conformity for Measurement Management
Systems.
SC's products got China Fangyuan Commission and the State Quality and
Technical Supervision ISO9001 international standard quality system
certification.
SC’s M7 molybdenum high speed steel was identified as the "National
Home Torch Program "and" high-tech products in Jiangsu Province
"and" China's high-tech products catalog "product, M42 High
Speed Steel is identified as" scientific and technological project of
Jiangsu Province "and" national Torch Program ", TG high-speed
tool steel by 2005 Torch Project of Jiangsu Province, M1 high-speed tool steel
are identified as national key new products of 2005 projects, TG brand tools,
high-speed steel was awarded China Top Brand.'s Credit rating AAA grade, keep
the national contract heavy credit enterprise, is a national key high-tech
enterprises, private technology enterprises in Jiangsu Province Key, won the
"National Top Ten metal tool manufacturing industry effective
enterprise" (No. 1).
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
China Tiangong (Hong Kong) Company Limited 100
China Tiangong (Hong Kong) Company Limited
===================================
Company File No.: 1247073
Date of Registration: June 13, 2008
Legal Form: Private
Status: Live
MANAGEMENT
Zhu Xiaokun, Legal
Representative, Chairman and General Manager
-----------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 54
Ø
ID# 32111919570121679X
Ø
Qualification:
University
Ø
Working
experience (s):
At present,
working in SC as legal representative, chairman and general manager
Also
working in Danyang Tianfa Forging Co., Ltd., Danyang Tianji Tool Packaging Co.,
Ltd., Tiangong Aihe Special Steel Co., Ltd. and Jiangsu Tiangong Group Co.,
Ltd. as legal representative
Directors:
-------------
Zhu Xingyuan ID# 321119195211046775
Yan Ronghua ID# 321119196903196779
Wu Suojun ID# 321181197310266797
Jiang Rongjun ID# 321119196912316779
Tong Guizhi Certificate No: A2432767
Supervisors:
----------------
· Zhu Hedi ID# 321119196211166800
· Zhu Xingguo ID# 321119195503026776
BUSINESS OPERATION
SC’s registered business scope includes developing, manufacturing and
selling tools, cutting tools, measure tools, indoor and outdoor television aerials
(excluding ground satellite receiving equipment); building hardware and
hardware parts; smelting and selling tool steel; importing and exporting
business (excluding the items prohibited by the state), (able to engage in items that need permit according to the regulation of
the State Council, after obtaining the permit from relative authorities).
SC is mainly
engaged in manufacturing and selling tools, cutting tools and measure tools.
Brand: TG
SC’s products
mainly include: high speed steel (HSS), HSS cutting tools, etc.
SC sources its materials 85% from domestic
market, and 15% from overseas market. SC sells 50% of its products in domestic
market, mainly Heilongjiang, Jiangsu, etc., and 50% to overseas market, mainly
USA, Europe, and Southeast Asia.
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 Customer
=============
Harbin Measuring & Cutting Tool Factory
Staff & Office:
--------------------------
SC is known
to have approx. 3,000 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 following
subsidiaries and branches:
=========================
Danyang
Tianfa Forging Co., Ltd.
Danyang Tianji Tool Packaging Co., Ltd.
Tiangong
Aihe Special Steel Co., Ltd.
Jiangsu
Tiangong Tools Company Limited Guiyang Branch
Jiangsu
Tiangong Tools Company Limited Chongqing Sales Branch
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 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 Danyang Houxiang Sub-branch
AC# 322901040000945
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
361,990 |
397,090 |
|
|
Accounts
receivable |
580,920 |
548,960 |
|
Notes receivable |
36,260 |
87,800 |
|
Advances to
suppliers |
78,450 |
7,670 |
|
Other receivable |
30,450 |
160,640 |
|
Inventory |
879,660 |
848,580 |
|
Other current
assets |
0 |
64,000 |
|
|
------------------ |
------------------ |
|
Current assets |
1,967,730 |
2,114,740 |
|
Fixed assets |
356,640 |
788,300 |
|
Construction in
progress |
406,570 |
94,680 |
|
Project material |
410 |
60 |
|
Long-term
investment |
474,160 |
665,230 |
|
Other
non-current assets |
66,780 |
42,040 |
|
|
------------------ |
------------------ |
|
Total assets |
3,272,290 |
3,705,050 |
|
|
============= |
============= |
|
Short-term loans |
1,160,800 |
510,750 |
|
Notes payable |
151,200 |
146,500 |
|
Accounts payable |
195,500 |
153,270 |
|
Wages payable |
19,840 |
26,670 |
|
Advances from
clients |
40,420 |
52,410 |
|
Taxes payable |
2,900 |
-7,180 |
|
Other payable |
45,810 |
314,030 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
1,616,470 |
1,196,450 |
|
Non-current
liabilities |
210,000 |
850,500 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
1,826,470 |
2,046,950 |
|
Equities |
1,445,820 |
1,658,100 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
3,272,290 |
3,705,050 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2010 |
|
Revenue |
1,976,180 |
|
Cost of sales |
1,666,940 |
|
Taxes and surcharges |
1,600 |
|
Sales expense |
40,160 |
|
Management expense |
46,560 |
|
Finance expense |
96,720 |
|
Investment
income |
91,660 |
|
Non-operating
income |
16,380 |
|
Profit before
tax |
224,940 |
|
Less: profit tax |
16,170 |
|
208,770 |
Important Ratios
=============
|
|
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
*Current ratio |
1.22 |
1.77 |
|
*Quick ratio |
0.67 |
1.06 |
|
*Liabilities
to assets |
0.56 |
0.55 |
|
*Net profit
margin (%) |
-- |
10.56 |
|
*Return on
total assets (%) |
-- |
5.63 |
|
*Inventory /
Revenue ×365 |
-- |
157 days |
|
*Accounts
receivable/ Revenue ×365 |
-- |
102 days |
|
*
Revenue/Total assets |
-- |
0.53 |
|
* Cost of
sales / Revenue |
-- |
0.84 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l
The revenue of SC appears fairly good in its line in
2010.
l
SC’s net profit margin is fairly good in 2010.
l
SC’s return on total assets is fairly good in 2010.
l
SC’s cost of goods sold is average, comparing with
its revenue.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal level
in both years.
l
SC’s quick ratio is maintained in a fairly good
level in 2010.
l
The inventory of SC appears large.
l
The accounts receivable of SC appears large.
l
The short-term loans of SC appear large.
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 average in both years.
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. The large amount of inventory, accounts receivable and short-term
loans may be a threat to SC’s financial condition. A credit line up to USD 8,000,000 would appear to be within
SC’s capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.38 |
|
UK Pound |
1 |
Rs.72.34 |
|
Euro |
1 |
Rs.63.87 |
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.