MIRA INFORM REPORT
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Report Date : |
19.04.2012 |
IDENTIFICATION DETAILS
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Name : |
NINGBO HUACHENG VALVE CO., LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
17.08.1993 |
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Com. Reg. No.: |
330226000009271 |
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Legal Form : |
One-Person Limited Liability
Company |
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Line of Business : |
manufacturing and selling
valve products |
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No. of Employees
: |
560 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
usd 3,000,000 |
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Status : |
Satisfactory |
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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, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
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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 |
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 |
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Off-credit |
D |
Company name & address
NINGBO HUACHENG
VALVE CO., LTD.
CHENGGUAN TOWN, NINGHAI COUNTY, NINGBO,
ZHEJIANG PROVINCE, 315600 PR CHINA
TEL: 86 (0)
574-65278653/65272058 FAX: 86 (0) 574-65572800
EXECUTIVE SUMMARY
INCORPORATION DATE : AUG. 17, 1993
REGISTRATION NO. : 330226000009271
REGISTERED LEGAL FORM : One-person limited liability company
CHIEF EXECUTIVE :
MR. LV JIAHUA (CHAIRMAN)
STAFF STRENGTH : 560
REGISTERED CAPITAL : CNY 32,944,172
BUSINESS LINE :
MANUFACTURING
TURNOVER :
cny 630,270,000 (UNaudited, AS OF DEC. 31,
2011)
EQUITIES :
cny 428,440,000 (UNaudited, AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 3,000,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : steady
GENERAL REPUTATION : well-known
EXCHANGE RATE :
CNY 6.30 = 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 Ren Min Bi
SC was registered as a Chinese foreign equity joint venture
enterprise at local Administration for Industry & Commerce (AIC -
The official body of issuing and renewing business license) on Aug. 17, 1993 and has been under present ownership
since Nov. of 2007.
Company Status: One-person
Limited Liability Company Single person LLC refers to a
limited liability company set up by only one natural person or legal person
as the single shareholder of it. The minimum registered capital
of Single person LLC is CNY100,000. The shareholder’s capital contributes,
as set out by the articles of associations should be a lump-sum payment in
full. One natural person can only
invest in and set up one limited liability company, which is not permitted
to invest in and set up a new Single person LLC. As to any one-person limited
liability company, the sole-investor nature of the natural person or legal
person shall be indicated in the registration documents of the company and
shall be indicated in the business license thereof as well. The regulation of Single person
LLC should be set up by the shareholder The regulation of Single person
LLC has no shareholder meeting.
SC’s registered business scope includes manufacturing and selling bronze
and brass valves, water heating equipment and other metal products, casting
copper products; importing and exporting commodities & technologies.
SC is mainly
engaged in manufacturing and selling valve products.
Mr. Lv Jiahua has
been legal representative, chairman and general manager of SC since 1993.
SC is known to have approx. 560 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 Ninghai County. Our
checks reveal that SC owns the total premise about 60,000 square meters.
http://www.huachengvalve.com/ It belongs to Ninghai Jingyi Valve Factory
and SC. The design is professional and the content is well organized. At
present it is only in English version.
E-mail: hchfm@cnool.net
SC has gained the certificate of ISO9001: 2000.
Changes of its registered information:
|
Date
of change |
Item |
Before
the change |
After
the change |
|
|
% of
shareholding |
Ning Shing
(U.S.A) Inc. 45% 43 Ninghai Jingyi Valve Factory 55% |
Ning Shing
(U.S.A) Inc. 43% 43 Ninghai Jingyi Valve Factory 57% |
|
|
Registered capital |
CNY 4,000,000 |
Present amount |
|
Registered legal form |
Chinese foreign
equity joint venture enterprise |
Present one |
|
|
Registration No. |
001339 |
Present one |
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% of
shareholding |
Ning Shing
(U.S.A) Inc. 43% 43 Ninghai Jingyi Valve Factory 57% |
Present one |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Ninghai Jingyi Valve Factory 100
Incorporation date : Nov. 3, 1999
Registration No. : 330226000082265
Registered legal form : Shares
jointly owned enterprise
Legal representative : Lv Jiahua
The above company is jointly occupying the
heading premise with SC.
Tel: 0574-65273166
Legal
Representative, Chairman and General Manager:
Mr. Lv Jiahua, in his 70’s, with junior
college education. He is currently responsible for the overall
management of SC.
Working Experience(s):
From 1987 to 1993 Worked in Ninghai Gas Equipment Factory as deputy director;
From 1993 to present Working in SC as legal
representative, chairman and general manager;
Also working in Ninghai Jingyi Valve
Factory as legal representative.
Deputy General
Manager:
Mr. Lv Lieping, in his 50’s, with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
At present Working in SC as deputy general manager
Directors:
Wei Jianping
Yan Pinwang
Yan Pingcong
Supervisor:
Jin Renlong
SC is mainly
engaged in manufacturing and selling valve products.
SC’s products mainly
include: brass stop valve, brass check valve, brass ball valve, backflow
prevention valve, brass bibcock, brass fitting, brass mixers, mixer
accessories, flexible hose, shower nozzle, rainfall shower head, bath
accessories, PVC sanitary ware, shower room, wash basin, etc.
SC sources its
materials 60% from domestic market, and 40% from the overseas markets, mainly
Europe and U.S.A. SC sells 10% of its products in domestic market, and 90% to
the overseas markets.
The
buying terms of SC include T/T, L/C and Credit of 30-60 days. The payment terms
of SC include T/T, L/C and Credit of 30-60 days.
Note:
SC declined to release its major suppliers and clients.
SC is not known to have the subsidiary at present.
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 refused to release any information of its
suppliers and the trade reference was not available.
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.
Bank of China Ninghai Sub-branch
AC#
819560645108091001
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
Cash & bank |
30,790 |
24,220 |
|
Inventory |
160,990 |
180,370 |
|
Accounts
receivable |
62,300 |
76,130 |
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Advances to
suppliers |
8,750 |
1,530 |
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Other
receivables |
32,800 |
111,570 |
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Other current
assets |
2,420 |
16,500 |
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------------------ |
------------------ |
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Current assets |
298,050 |
410,320 |
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Fixed assets net
value |
41,250 |
48,730 |
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Long term
investment |
0 |
0 |
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Projects under
construction |
4,240 |
1,220 |
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Intangible and
other assets |
67,840 |
96,750 |
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------------------ |
------------------ |
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Total assets |
411,380 |
557,020 |
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=========== |
=========== |
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Short loan |
0 |
100,050 |
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Accounts payable |
22,710 |
23,220 |
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Advances from
clients |
1,080 |
1,600 |
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Taxes payable |
-1,990 |
-2,620 |
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Other Accounts
payable |
1,660 |
2,280 |
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Other current
liabilities |
5,900 |
4,050 |
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------------------ |
------------------ |
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Current
liabilities |
29,360 |
128,580 |
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Long term
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
29,360 |
128,580 |
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Equities |
382,020 |
428,440 |
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------------------ |
------------------ |
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Total
liabilities & equities |
411,380 |
557,020 |
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=========== |
=========== |
Income Statement
Unit: CNY’000
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|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
Turnover |
420,100 |
630,270 |
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Cost of goods sold |
324,500 |
510,970 |
|
Sales expense |
11,620 |
14,880 |
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Management expense |
24,130 |
36,510 |
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Finance expense |
4,310 |
2,300 |
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Profit before tax |
62,500 |
72,010 |
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Less: profit tax |
8,430 |
9,590 |
|
Profits |
54,070 |
62,420 |
Note: The Financial Report for Year 2011 hasn’t been audited.
Important
Ratios
=============
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
*Current ratio |
10.15 |
3.19 |
|
*Quick ratio |
4.67 |
1.79 |
|
*Liabilities
to assets |
0.07 |
0.23 |
|
*Net profit
margin (%) |
12.87 |
9.90 |
|
*Return on
total assets (%) |
13.14 |
11.21 |
|
*Inventory
/Turnover ×365 |
140 days |
105 days |
|
*Accounts
receivable/Turnover ×365 |
55 days |
45 days |
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*Turnover/Total
assets |
1.02 |
1.13 |
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* Cost of
goods sold/Turnover |
0.77 |
0.81 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good and it
increased in 2011.
l
SC’s net profit margin is fairly good in both
years.
l
SC’s return on total assets is fairly good in both
years.
l
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: FAIRLY
GOOD
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 fairly large.
l
The accounts receivable of SC appears average.
l
The short-term loan of SC appears fairly large in
2011.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: FAIRLY
GOOD
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 good.
SC is well-known in its industry with fairly good financial conditions.
The large amount of inventory and short-term loan could be a threat to SC’s
financial condition. A credit line up to USD 3,000,000 would appear to be
within SC’s capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.51.50 |
|
UK Pound |
1 |
Rs.81.99 |
|
Euro |
1 |
Rs.67.54 |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
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>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 |
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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.