MIRA
INFORM REPORT
|
Report Date : |
31.08.2012 |
IDENTIFICATION DETAILS
|
Name : |
ZHENGZHOU MINGTAI INDUSTRY CO., LTD. |
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Registered Office : |
No. 6, Changchun Road, Hi-Tech Development Zone Zhengzhou, Henan Province 450001 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
08.07.2005 |
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Com. Reg. No.: |
410199400000662 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
Manufacturing and selling aluminum foil and alloy plate. |
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No. of Employees : |
780 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
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) |
|
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 |
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Off-credit |
D |
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 - in 2010 China became the world's largest
exporter. Reforms began with the phasing out of collectivized agriculture, and
expanded to include the gradual liberalization of prices, fiscal
decentralization, increased autonomy for state enterprises, creation of a
diversified banking system, development of stock markets, rapid growth of the
private sector, and opening to foreign trade and investment. China has
implemented reforms in a gradualist fashion. In recent years, China has renewed
its support for state-owned enterprises in sectors it considers important to
"economic security," explicitly looking to foster globally
competitive national champions. After keeping its currency tightly linked to
the US dollar for years, in July 2005 China revalued its currency by 2.1%
against the US dollar and moved to an exchange rate system that references a
basket of currencies. From mid 2005 to late 2008 cumulative appreciation of the
renminbi against the US dollar was more than 20%, but the exchange rate
remained virtually pegged to the dollar from the onset of the global financial
crisis until June 2010, when Beijing allowed resumption of a gradual
appreciation. The restructuring of the economy and resulting efficiency gains
have contributed to a more than tenfold increase in GDP since 1978. Measured on
a purchasing power parity (PPP) basis that adjusts for price differences, China
in 2010 stood as the second-largest economy in the world after the US, having
surpassed Japan in 2001. The dollar values of China's agricultural and
industrial output each exceed those of the US; China is second to the US in the
value of services it produces. Still, per capita income is below the world
average. The Chinese government faces numerous economic challenges, including:
(a) reducing its high domestic savings rate and correspondingly low domestic
demand; (b) sustaining adequate job growth for tens of millions of migrants and
new entrants to the work force; (c) reducing corruption and other economic
crimes; and (d) containing environmental damage and social strife related to
the economy's rapid transformation. Economic development has progressed further
in coastal provinces than in the interior, and by 2011 more than 250 million
migrant workers and their dependents had relocated to urban areas to find work.
One consequence of population control policy 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 economic development. The Chinese government
is seeking to add energy production capacity from sources other than coal and
oil, focusing on nuclear and alternative energy development. In 2010-11, China
faced high inflation resulting largely from its credit-fueled stimulus program.
Some tightening measures appear to have controlled inflation, but GDP growth
consequently slowed to near 9% for 2011. An economic slowdown in Europe is
expected to further drag Chinese growth in 2012. Debt overhang from the
stimulus program, particularly among local governments, and a property price
bubble challenge policy makers currently. The government's 12th Five-Year Plan,
adopted in March 2011, emphasizes continued economic reforms and the need to
increase domestic consumption in order to make the economy less dependent on
exports in the future. However, China has made only marginal progress toward
these rebalancing goals.
|
Source
: CIA |
Company name and address
ZHENGZHOU MINGTAI INDUSTRY CO., LTD.
NO. 6, CHANGCHUN ROAD, HI-TECH DEVELOPMENT ZONE
ZHENGZHOU, HENAN PROVINCE 450001 PR CHINA
TEL: 86 (0) 371-67898603
FAX: 86 (0) 371-67898602
EXECUTIVE SUMMARY
Date of Registration : JULY 8, 2005
REGISTRATION NO. : 410199400000662
LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE
ENTERPRISE
REGISTERED CAPITAL : CNY 70,000,000
staff :
780
BUSINESS CATEGORY : manufacturing & trading
Revenue :
CNY 3,019,904,000 (AS OF DEC. 31,
2011)
EQUITIES :
CNY 386,784,000 (AS OF DEC. 31, 2011)
WEBSITE : www.zzmtsy.com
E-MAIL :
office@zzmtsy.com
PAYMENT :
AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.36 = 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 Chinese-foreign equity joint venture enterprise
of PRC with State Administration of Industry & Commerce (SAIC) under
registration No.: 410199400000662
on July 8, 2005.
SC’s Organization Code Certificate No.:
77653441-3
SC’s Tax No.: 410102776534413
SC’s registered capital: CNY 70,000,000
SC’s paid-in capital: CNY 70,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Registration No. |
001519 |
410199400000662 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Henan Mingtai Al.Industrial Co., Ltd. |
75 |
|
Korea Onse International Limited |
25 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative |
Ma Xingxing |
|
Chairman |
Ma Tingyi |
|
General Manager |
Du Youdong |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Henan Mingtai Al.Industrial Co., Ltd. 75
Korea Onse International Limited 25
n
Henan Mingtai Al.Industrial Co., Ltd.
--------------------------------------------------
Registration No.: 410100000036734
Date of Registration: April 18, 1997
Legal Form: Shares Limited Company
Registered Capital: CNY 401,000,000
Legal Representative: Ma Tingyi
MANAGEMENT
Ma Xingxing , Legal
Representative
---------------------------------------------------------
Ø
Gender: M
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as legal representative
Ma Tingyi ,
General Manager
--------------------------------------------------
Ø
Gender: M
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as general manager
Also working in Henan Mingtai Al.Industrial Co., Ltd. as
legal representative
Du Youdong ,
Deputy General Manager
--------------------------------------------------------------
Ø
Gender: M
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as deputy general manager
BUSINESS OPERATION
SC’s registered
business scope includes manufacturing and selling aluminum foil and alloy
plate, and technology services; selling PS for printing, and related technology
service.
SC is mainly
engaged in manufacturing and selling aluminum foil and alloy plate.
SC’s products
mainly include:
Presensitized Plate Bases
Packing Foils
Cable Foils
Alloy Plates
Air-condition Foils
Aluminum Base Plates
Aluminum-plastic Plate Bases
Bottle Cap Materials
SC sources its materials 100% from domestic
market, mainly Henan. SC sells 53% of its products in domestic market, and 47%
to overseas market, mainly U.S.A., and Korea.
The
import & export status of SC in 2011 is as follows,
|
Country |
Amount of
Exports (USD) |
Amount of Imports (USD) |
|
U.S.A. |
67,465,400 |
-- |
|
Korea |
27,098,300 |
-- |
|
|
----------------- |
----------------- |
|
Total |
94,563,700 |
-- |
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.
Staff & Office:
--------------------------
SC is known
to have approx. 780 staff at
present.
SC owns an area as
its operating office & factory of approx. 170,905 sq. meters at the heading
address.
RELATED COMPANY
SC
is not known to have any subsidiary at present.
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
Bank of China Zhengzhou Hi-tech Zone Sub-branch
AC#:
633943053708091001
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
125,094 |
33,062 |
|
|
Held for trading financial assets |
0 |
401 |
|
Notes receivable |
92,882 |
92,913 |
|
Accounts
receivable |
101,086 |
117,078 |
|
Advances to
suppliers |
72,121 |
5,493 |
|
Other receivable |
698 |
309 |
|
Inventory |
88,098 |
235,119 |
|
Non-current
assets within one year |
0 |
0 |
|
Prepaid expenses |
0 |
0 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
479,979 |
484,375 |
|
Fixed assets |
153,601 |
209,083 |
|
Construction in
progress |
57,058 |
35,348 |
|
Engineering
profits |
426 |
506 |
|
Intangible
assets |
37,010 |
36,170 |
|
Long-term
investment |
0 |
0 |
|
Deferred income
tax assets |
488 |
1,476 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
728,562 |
766,958 |
|
|
============= |
============= |
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Short-term loans |
175,000 |
80,000 |
|
Notes payable |
200,000 |
23,808 |
|
Accounts payable |
26,081 |
263,225 |
|
Wages payable |
1,973 |
3,565 |
|
Taxes payable |
3,811 |
-6,300 |
|
Advances from
clients |
25,690 |
13,808 |
|
Other payable |
2,241 |
1,968 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
434,796 |
380,074 |
|
Non-current
liabilities |
0 |
100 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
434,796 |
380,174 |
|
Equities |
293,766 |
386,784 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
728,562 |
766,958 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2010 |
As of Dec. 31,
2011 |
|
Revenue |
1,706,622 |
3,019,904 |
|
Cost of sales |
1,551,971 |
2,817,841 |
|
Taxes and surcharges |
0 |
475 |
|
Sales expense |
21,233 |
38,194 |
|
Management expense |
12,855 |
16,272 |
|
Finance expense |
15,191 |
11,997 |
|
Profit before
tax |
105,585 |
138,140 |
|
Less: profit tax |
11,434 |
34,121 |
|
94,151 |
104,019 |
Important Ratios
=============
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
*Current ratio |
1.10 |
1.27 |
|
*Quick ratio |
0.90 |
0.66 |
|
*Liabilities
to assets |
0.60 |
0.50 |
|
*Net profit
margin (%) |
5.52 |
3.44 |
|
*Return on
total assets (%) |
12.92 |
13.56 |
|
*Inventory /
Revenue ×365 |
19 days |
29 days |
|
*Accounts
receivable/ Revenue ×365 |
22 days |
15 days |
|
*
Revenue/Total assets |
2.34 |
3.94 |
|
* Cost of
sales / Revenue |
0.91 |
0.93 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l
The revenue of SC appears fairly good in its line,
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 good in both years.
l
SC’s cost of sales is average, comparing with its
revenue.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears average in both years.
l
The accounts receivable of SC is average in both
years.
l
The short-term loans of SC are maintained in an
average level.
l
SC’s revenue is in an average level, comparing with
the size of its total assets.
LEVERAGE: FAIRLY
GOOD
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 Good.
CONCLUSIONS
SC is considered medium-sized in its line with fairly good financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.65 |
|
|
1 |
Rs.88.10 |
|
Euro |
1 |
Rs.69.83 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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.