MIRA INFORM
REPORT
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Report Date : |
30.05.2011 |
IDENTIFICATION DETAILS
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Name : |
JIAXING PENGCHENG MAGNET CO., LTD. |
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Registered Office : |
No. 8, Changle
Road, Weitang Industrial Zone, Jiashan County, Jiaxing, Zhejiang Province,
314100 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
28.02.2001 |
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Com. Reg. No.: |
330421000028900 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
manufacturing and selling NdFeB permanent magnet materials |
RATING & COMMENTS
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MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
usd 100,000 |
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Status : |
Moderate |
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Payment
Behaviour : |
No Complaints |
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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 – 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 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
Company name & address
JIAXING PENGCHENG MAGNET CO., LTD.
NO.
8, CHANGLE ROAD, WEITANG INDUSTRIAL ZONE,
JIASHAN
COUNTY, JIAXING, ZHEJIANG province, 314100 PR CHINA
TEL:
86 (0) 573-84185222/84185276 FAX:
86 (0) 573-84822800
EXECUTIVE SUMMARY
INCORPORATION
DATE : FEBRUARY 28, 2001
REGISTRATION
NO. : 330421000028900
REGISTERED
LEGAL FORM : Limited liabilities company
STAFF
STRENGTH : 120
REGISTERED
CAPITAL : CNY 10,800,000
BUSINESS
LINE : MANUFACTURING
& TRADING
TURNOVER : CNY 48,730,000 (AS
OF DEC. 31, 2010)
EQUITIES : CNY 16,880,000 (AS OF DEC. 31, 2010)
PAYMENT
: AVERAGE
RECOMM.
CREDIT RANGE : UP TO usd 100,000 (periodical
review)
MARKET
CONDITION : average
FINANCIAL
CONDITION : Fairly stable
OPERATIONAL
TREND : STEADY
GENERAL
REPUTATION : average
EXCHANGE
RATE : CNY 6.4851 = usd
1
Adopted abbreviations
ANS - amount not
stated
NS - not stated
SC - subject company
(the company inquired by you)
NA - not available
CNY - China Yuan
Renminbi
SC was registered as
a limited liabilities co. at local Administration for Industry & Commerce
(AIC - The official body of issuing and renewing business license) on February
28, 2001.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders
contribute its registered capital jointly. 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 CNY 30,000. 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 30% 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.
SC’s registered business scope includes manufacturing
& selling NdFeB permanent magnet materials, plastic products, hardware
parts, electronic components and electric motor parts; foreign trade business.
SC is mainly engaged in manufacturing and
selling NdFeB permanent magnet materials.
Mr. Chen Lizhan is legal representative, chairman
and general manager of SC at present.
SC is known to have approx. 120 employees at
present.
SC is currently operating at the above stated address, and this address houses its operating office and factory in the industrial zone of Jiaxing. Our checks reveal that SC owns the total premise, but SC’s accountant refused to release the gross area.
http://www.pc-magnet.com
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
Email: clin818@pc-magnet.com
SC has obtained ISO
9001:2000.
No significant
changes were found during our checks with the local AIC.
MAIN SHAREHOLDERS:
Name % of Shareholding
Chen Lizhan 90
Chen Dongying 10
l
Legal
representative, chairman and general manager:
Mr. Chen Lizhan, ID#
330222611116735, born in 1961, 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 Cixi Pengcheng Electronic Co., Ltd. as legal representative.
SC is mainly engaged in manufacturing and
selling NdFeB permanent magnet materials.
SC’s products mainly
include: NdFeB magnets, AlNiCo magnets, SmCo magnets, Magnetic products.
SC sources its materials 100% from domestic market. SC sells 40% of its
products in domestic market, and 60% to overseas market.
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.
Note: SC refused to release its
major clients and suppliers.
Cixi Pengcheng Electronic Co., Ltd.
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.
Agricultural Bank of China Zhejiang Branch
AC# 330201040013018
Relationship: Normal.
Balance Sheet
Unit: CNY’000
|
|
As of Dec. 31, 2010 |
|
Cash & bank |
1,940 |
|
Inventory |
9,970 |
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Bills receivable |
1,010 |
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Accounts receivable |
7,120 |
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Other Accounts receivable |
420 |
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Advances to suppliers |
500 |
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To be apportioned expense |
0 |
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Other current assets |
0 |
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|
------------------ |
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Current assets |
20,960 |
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Fixed assets net value |
9,030 |
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Projects under construction |
4,630 |
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Long-term investment |
0 |
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Intangible and other assets |
2,400 |
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------------------ |
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Total assets |
37,020 |
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============= |
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Short loans |
17,350 |
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Accounts payable |
2,170 |
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Advance from customers |
0 |
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Other Accounts payable |
450 |
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Notes payable |
0 |
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Taxes payable |
30 |
|
Withdraw the expenses in advance |
90 |
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Surcharge payable |
50 |
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Other current liabilities |
0 |
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------------------ |
|
20,140 |
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Long term liabilities |
0 |
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Other liabilities |
0 |
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------------------ |
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Total liabilities |
20,140 |
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Equities |
16,880 |
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------------------ |
|
37,020 |
|
|
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============= |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31, 2010 |
|
Turnover |
48,730 |
|
Cost of goods sold |
41,210 |
|
Taxes and additional of main operation |
90 |
|
Sales expense |
890 |
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Management expense |
3,520 |
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Finance expense |
990 |
|
Profit before tax |
2,000 |
|
Less: profit tax |
500 |
|
Profits |
1,500 |
Important Ratios
=============
|
|
As of Dec. 31, 2010 |
|
*Current ratio |
1.04 |
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*Quick ratio |
0.55 |
|
*Liabilities to assets |
0.54 |
|
*Net profit margin (%) |
3.08 |
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*Return on total assets (%) |
4.05 |
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*Inventory /Turnover ×365 |
75 days |
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*Accounts receivable/Turnover ×365 |
53 days |
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*Turnover/Total assets |
1.32 |
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* Cost of goods sold/Turnover |
0.85 |
PROFITABILITY: AVERAGE
l
The
turnover of SC appears average in its line.
l
SC’s net
profit margin is average.
l
SC’s
return on total assets is average.
l
SC’s cost
of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
l
The
current ratio of SC is maintained in a normal level.
l
SC’s
quick ratio is maintained in a fair level.
l
The
inventory of SC is maintained in a fairly large level.
l
The
accounts receivable of SC is maintained in an average level.
l
SC’s
short-term loan appears large in 2010.
l
SC’s
turnover is in an average level, comparing with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt
ratio of SC is average.
l
The risk
for SC to go bankrupt is average.
Overall financial condition of the SC: Fairly
stable.
SC is considered
medium-sized in its line with fairly stable financial conditions. The large amount of inventory and short loans could be a threat to SC’s financial
condition. A credit line up to USD 100,000 would appear to be within
SC’s capacities upon a periodical review basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.21 |
|
UK Pound |
1 |
Rs.74.31 |
|
Euro |
1 |
Rs.64.40 |
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 |
|
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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.