MIRA
INFORM REPORT
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Report Date : |
18.12.2012 |
IDENTIFICATION DETAILS
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Name : |
NINGBO MH
INDUSTRY CO., LTD. |
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Registered Office : |
Mh Bldg., No.
616-618 Jiangdong South Road Ningbo, Zhejiang Province 315192 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
07.12.1999 |
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Reg. No.: |
330214000033834 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Importing and Exporting commodities and technology |
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No. of Employees : |
245 |
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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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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
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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 |
china - 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.
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Source : CIA |
Company name and address
NINGBO MH
INDUSTRY CO., LTD.
MH BLDG., NO.
616-618 JIANGDONG SOUTH ROAD
NINGBO,
ZHEJIANG PROVINCE 315192 PR CHINA
TEL: 86 (0)
574-27766888/27766999
FAX: 86 (0)
574-27766000/27766111
EXECUTIVE SUMMARY
Date of Registration : december 7, 1999
REGISTRATION NO. : 330214000033834
LEGAL FORM : Limited liabilities company
CHIEF EXECUTIVE :
wang chunhua (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : cny 52,800,000
staff :
245
BUSINESS CATEGORY : trading
Revenue :
CNY 676,951,000 (AS OF DEC. 31,
2011)
EQUITIES :
CNY 76,182,000 (AS OF DEC. 31, 2011)
WEBSITE : www.mh-chine.com
E-MAIL : sales@mh-chine.com
PAYMENT :
AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND : fairly steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.23 = 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 limited liabilities company of PRC with State Administration
of Industry & Commerce (SAIC) under registration No.: 330214000033834 on
December 7, 1999.
SC’s Organization Code Certificate No.:
71720521-7
SC’s Tax No.: 330206717205217
SC’s registered capital: CNY 52,800,000
SC’s paid-in capital: CNY 52,800,000
Registration Change Record:-
No significant changes of SC have been noted
in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Wang Chunhua |
60 |
|
Chen Hao |
24 |
|
Ni Zhanchun |
11 |
|
Yan Guanghui |
5 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and General Manager |
Wang Chunhua |
|
Director |
Ni Zhanchun |
|
Supervisor |
Yan Guanghui |
|
Chen Hao |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Wang Chunhua 60
Chen Hao 24
Ni Zhanchun 11
Yan Guanghui 5
MANAGEMENT
Wang Chunhua , Legal Representative, Chairman and General
Manager
---------------------------------------------------------------------------------------------------------
Gender: M
ID# 330204711005302
Age: 41
Qualification: University
Working experience (s):
At present, working in SC as legal representative, chairman and general
manager
Ni Zhanchun,
Director
-----------------------------------------
Gender: M
ID# 330203570124183
Age: 55
Qualification: University
Yan Guanghui,
Supervisor
----------------------------------------------
Gender: M
ID# 432322700322451
Age: 42
Qualification: University
Chen Hao,
Supervisor
-------------------------------------
Gender: M
ID# 330203691015181
Age: 43
Qualification: University
BUSINESS
OPERATION
SC’s registered business scope includes importing and
exporting commodities and technology; processing with imported materials,
processing with imported samples, assemblying with imported parts, and
compensation trade in agreement; counter trade & transit trade; and renting
its houses.
SC is mainly engaged in international trade.
SC’s products mainly include:
Swiss Voile Lace
Curtain Fabric
Sofa Fabric
Quality Voile
Etc.
SC sources its materials 100% from domestic market, mainly Zhejiang. SC sells
60% of its products in domestic market, and 40% to overseas market, mainly
U.S.A., Southeast Asia, etc.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Clients*
------------------
Compa±Ia Logistica Mayorista Sac
Miguel Angel Parraga Chavez
Coud Bec Inc.
Weissmans Theatrical Supplies Inc.
Kamex International S A
Staff &
Office:
--------------------------
SC is known to have approx. 245
staff at present.
SC owns an area as its operating office, but the detailed information is
unknown.
RELATED
COMPANY
SC is known to
have an office at present,
Ningbo MH Industry Co., Ltd. Haishu Office
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:
Shanghai Pudong Development Bank Ningbo Branch
AC#: 70014122411038
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
77,095 |
66,681 |
|
|
Notes receivable |
0 |
0 |
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Accounts receivable |
171,060 |
107,993 |
|
Advances to suppliers |
5,202 |
21,817 |
|
Other receivable |
61,466 |
146,379 |
|
Subsidies receivable |
43,083 |
26,815 |
|
Inventory |
10,590 |
14,254 |
|
Non-current assets within one year |
0 |
0 |
|
Other current assets |
506 |
489 |
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|
------------------ |
------------------ |
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Current assets |
369,002 |
384,428 |
|
Fixed assets |
4,972 |
4,330 |
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Long-term prepaid expenses |
0 |
0 |
|
Deferred income tax assets |
0 |
0 |
|
Other non-current assets |
1,189 |
1,538 |
|
|
------------------ |
------------------ |
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Total assets |
375,163 |
390,296 |
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|
============= |
============= |
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Short-term loans |
102,731 |
133,884 |
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Notes payable |
106,330 |
70,672 |
|
Accounts payable |
90,780 |
76,319 |
|
Wages payable |
0 |
0 |
|
Taxes payable |
-687 |
-912 |
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Advances from clients |
0 |
0 |
|
Other payable |
0 |
29,412 |
|
Prepaid expense |
1,164 |
4,739 |
|
Other current liabilities |
4,234 |
0 |
|
|
------------------ |
------------------ |
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Current liabilities |
304,552 |
314,114 |
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Non-current liabilities |
0 |
0 |
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|
------------------ |
------------------ |
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Total liabilities |
304,552 |
314,114 |
|
Equities |
70,611 |
76,182 |
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|
------------------ |
------------------ |
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Total liabilities & equities |
375,163 |
390,296 |
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|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
Revenue |
570,564 |
676,951 |
|
Cost of sales |
534,560 |
625,434 |
|
Taxes and surcharges |
313 |
0 |
|
Sales expense |
10,099 |
14,589 |
|
Management expense |
15,343 |
22,213 |
|
Finance expense |
5,670 |
8,449 |
|
Non-operating income |
2,095 |
2,465 |
|
Non-operating expense |
229 |
829 |
|
Profit before tax |
6,466 |
7,901 |
|
Less: profit tax |
1,688 |
2,243 |
|
4,778 |
5,658 |
Important Ratios
=============
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
*Current ratio |
1.21 |
1.22 |
|
*Quick ratio |
1.18 |
1.18 |
|
*Liabilities to assets |
0.81 |
0.80 |
|
*Net profit margin (%) |
0.84 |
0.84 |
|
*Return on total assets (%) |
1.27 |
1.45 |
|
*Inventory / Revenue ×365 |
7 days |
15 days |
|
*Accounts receivable/ Revenue ×365 |
110 days |
59 days |
|
* Revenue/Total assets |
1.52 |
1.73 |
|
* Cost of sales / Revenue |
0.94 |
0.92 |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
The revenue of SC appears fairly good, and it increased in 2011.
SC’s net profit margin is average in both years.
SC’s return on total assets is average in both years.
SC’s cost of sales is fairly high, comparing with its revenue.
LIQUIDITY: FAIRLY
GOOD
The current ratio of SC is maintained in a normal level in both years.
SC’s quick ratio is maintained in a fairly good level in both years.
The inventory of SC appears average.
The accounts receivable of SC appears large.
The short-term loans of SC appear large.
SC’s revenue is in an average level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.63 |
|
|
1 |
Rs.88.40 |
|
Euro |
1 |
Rs.71.85 |
INFORMATION DETAILS
|
Report
Prepared by : |
SDA |
RATING EXPLANATIONS
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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 |
|
-- |
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.