MIRA
INFORM REPORT
|
Report Date : |
20.12.2012 |
IDENTIFICATION DETAILS
|
Name : |
SHANDONG FIN CNC MACHINE CO., LTD. |
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Registered Office : |
No. 389 Tianchen Street, Hi-Tech Development Zone, Jinan, Shandong
Province 250101 Pr |
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Country : |
China |
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Financials (as on) : |
30.09.2012 |
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Date of Incorporation : |
19.08.2002 |
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Com. Reg. No.: |
370000228021465 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
developing, manufacturing and selling CNC machinery and equipment. |
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No. of Employees : |
816 employees |
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 |
|
Status : |
Good |
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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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
|
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.
|
Source : CIA |
Company name & address
SHANDONG FIN CNC MACHINE CO.,
LTD.
NO. 389 TIANCHEN STREET, HI-TECH DEVELOPMENT ZONE
JINAN, SHANDONG PROVINCE 250101 PR CHINA
TEL: 86 (0) 531-88875525
FAX: 86 (0) 531-88875516
EXECUTIVE SUMMARY
Date of Registration : august 19, 2002
REGISTRATION NO. : 370000228021465
LEGAL FORM : SHARES LIMITED COMPANY
REGISTERED CAPITAL :
cny 189,150,000
staff : 816
BUSINESS CATEGORY :
developing & MANUFACTURING & trading
REVENUE :
CNY 237,032,000 (FROM JAN. 1, 2012 TO SEP. 30, 2012)
EQUITIES : CNY 572,241,000 (AS OF
SEP. 30, 2012)
WEBSITE : www.fincm.com
E-MAIL :
fincm-as@fincm.com
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly good
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
LEGAL
STATUS & HISTORY
SC was
established as a limited liabilities company of PRC on August 19, 2002.However, SC changed to
present legal form, and was registered as a shares limited company of PRC with
State Administration for Industry & Commerce (SAIC) under registration No.:
370000228021465 on June 18, 2007.
SC’s Organization Code Certificate
No.: 74241364-8
SC’s Tax No.: 370112742413648
SC’s registered capital: CNY 189,150,000
SC’s paid-in capital: CNY 189,150,000
Registration Change Record:-
|
Date |
Change
of Contents |
Before
the change |
After
the change |
|
2012 |
Registered
Capital |
CNY 145,500,000 |
CNY 189,150,000 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) (as
of June 30, 2012) |
% of Shareholding |
|
Guan Tong |
12.46 |
|
Liu Yi |
12.46 |
|
Li Shengjun |
12.46 |
|
Guo Bochun |
12.46 |
|
Shandong Hanfu Investment
& Consultation Co., Ltd. |
1.18 |
|
Zhang Sufen |
0.64 |
|
Wang Yajun |
0.30 |
|
Chen Jun |
0.30 |
|
Tian Xiuhong |
0.28 |
|
Hunan Chuangfa Real Estate
Group Co., Ltd. |
0.24 |
|
Other Shareholders |
47.22 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Li Shengjun |
|
Director |
Liu Yi |
|
Guan Tong |
|
|
Li Shengjun |
|
|
Li Mingwu |
|
|
Guo Luwei |
|
|
Guo Bochun |
|
|
Independent Director |
Yang Qingying |
|
Peng Xuejun |
|
|
Mo Deshang |
RECENT DEVELOPMENT
SC was listed in Shenzhen Stock Exchange Market with the stock code
002270.
SHAREHOLDER CHART & BACKGROUND
Name (As of June 30,
2012) %
of Shareholding
Guan Tong 12.46
Liu Yi 12.46
Li Shengjun 12.46
Guo Bochun 12.46
Shandong Hanfu Investment &
Consultation Co., Ltd. 1.18
Zhang Sufen 0.64
Wang Yajun 0.30
Chen Jun 0.30
Tian Xiuhong 0.28
Hunan Chuangfa Real Estate Group
Co., Ltd. 0.24
Other Shareholders 47.22
n Shandong
Hanfu Investment & Consultation Co., Ltd.
-------------------------------------------
Registration No.: 370100200036672
n Hunan Chuangfa
Real Estate Group Co., Ltd.
-----------------------------------------------------------
Registration No.: 431100000000400
Date of Registration: December 29, 1998
Legal Form: Shares Limited Company
Registered Capital: CNY 100,180,000
Legal Representative: Wang Di
MANAGEMENT
Li Shengjun, Legal Representative, Chairman and General Manager
----------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 49
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal
representative, chairman and general manager
Director
----------
Liu Yi
Guan Tong
Li Shengjun
Li Mingwu
Guo Luwei
Guo Bochun
Independent
Director
---------------------------
Yang Qingying
Peng Xuejun
Mo Deshang
BUSINESS OPERATION
SC’s registered
business scope includes developing, manufacturing and selling CNC machinery and
equipment; consultation for industrial automation control technology; selling
hydraulic pneumatic & electronic components; developing computer software;
importing and exporting commodities.
SC is mainly
engaged in developing, manufacturing and selling CNC machinery and equipment.
SC’s products mainly include:
Fin-Cnc Machine
for H-Beam
Fin-Cnc Machine
for Angle Bar
Fin-Cnc Machine
for Plate (Steel Structure and Power Industry)
Fin-Cnc Machine
for Tube Sheet
Fin-Cnc Machine
for Pipe
Fin-Cnc Machines
for Automobile Industry
Fin-Other Cnc
Machines
SC sources its materials 80% from domestic
market, and 20% from overseas market. 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, 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 Suppliers*
---------------------
Shanghai Huitong Auto. Science & Technology Development Co., Ltd.
Jinan Jiahe Weiye Co., Ltd.
*Major Customers*
----------------------
BS TransComm Limited
Maanshan Fangyuan Slewing Ring Co., Ltd.
Shaanxi Heavy-duty Motor Company Limited
Staff & Office:
--------------------------
SC is
known to have approx. 816
staff at present.
SC owns an area as
its operating office and factory, but the detailed information is unknown.
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’s suppliers
declined to make any comments.
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
The bank
information of SC is not filed in local SAIC.
FINANCIALS
Consolidated Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Sep. 30, 2012 |
|
101,187 |
105,476 |
|
|
Notes receivable |
37,003 |
41,633 |
|
Accounts
receivable |
85,150 |
77,548 |
|
Advances to
suppliers |
6,266 |
6,997 |
|
Interest
receivable |
91 |
28 |
|
Dividends
receivable |
0 |
0 |
|
Other receivable |
3,662 |
4,058 |
|
Inventory |
143,815 |
164,238 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
377,174 |
399,978 |
|
Long-term equity
investment |
0 |
0 |
|
Investment real
estate |
0 |
0 |
|
Fixed assets |
276,703 |
285,693 |
|
Construction in
progress |
59,704 |
35,733 |
|
Engineering
materials |
0 |
0 |
|
Intangible
assets |
82,486 |
80,885 |
|
Development
expenditure |
0 |
0 |
|
Goodwill |
0 |
0 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred income
tax assets |
9,722 |
8,886 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
805,789 |
811,175 |
|
|
============= |
============= |
|
Short-term loans |
0 |
0 |
|
Notes payable |
49,260 |
51,880 |
|
Accounts payable |
49,598 |
58,169 |
|
Advances from
clients |
54,616 |
47,423 |
|
Payroll payable |
18,371 |
14,608 |
|
Tax payable |
5,995 |
6,941 |
|
Dividends
payable |
0 |
0 |
|
Other payable |
17,341 |
14,260 |
|
Non-current
liabilities due within one year |
5,456 |
5,457 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
200,637 |
198,738 |
|
Non-current
liabilities |
44,289 |
40,196 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
244,926 |
238,934 |
|
Equities |
560,863 |
572,241 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
805,789 |
811,175 |
|
|
============= |
============= |
Consolidated Income Statement
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
From
Jan. 1, 2012 to Sep. 30, 2012 |
|
Revenue |
361,317 |
237,032 |
|
Cost of sales |
248,043 |
161,789 |
|
Taxes and surcharges |
680 |
1,916 |
|
Sales expense |
43,987 |
28,999 |
|
Management expense |
44,140 |
31,918 |
|
Finance expense |
-1,474 |
-957 |
|
Non-operating
income |
8,905 |
11,282 |
|
Non-operating expense |
421 |
3 |
|
Profit before
tax |
31,406 |
21,949 |
|
Less: profit tax |
4,594 |
3,297 |
|
Profits |
26,812 |
18,652 |
Important Ratios
=============
|
|
As of
Dec. 31, 2011 |
As of
Sep. 30, 2012 |
|
*Current ratio |
1.88 |
2.01 |
|
*Quick ratio |
1.16 |
1.19 |
|
*Liabilities
to assets |
0.30 |
0.29 |
|
*Net profit
margin (%) |
7.42 |
7.87 |
|
*Return on
total assets (%) |
3.33 |
2.30 |
|
*Inventory /
Revenue ×365/270 |
146
days |
188 days |
|
*Accounts
receivable/ Revenue ×365/270 |
87 days |
89 days |
|
*
Revenue/Total assets |
0.45 |
0.29 |
|
* Cost of
sales / Revenue |
0.69 |
0.68 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l The revenue of SC appears fairly good.
l SC’s net profit
margin is fairly good.
l SC’s return on total
assets is good.
l
SC’s cost of sales is average, comparing with its revenue.
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
SC has no short-term loans.
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 low.
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.54.74 |
|
UK Pound |
1 |
Rs.89.02 |
|
Euro |
1 |
Rs.72.48 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.