MIRA
INFORM REPORT
|
Report Date : |
27.12.2012 |
IDENTIFICATION DETAILS
|
Name : |
Shandong
Loften Aluminium Foil Co., Ltd. |
|
|
|
|
Registered Office : |
no. 1568 Binbo Avenue, Boxing County, Shandong Province 256500 PR |
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Country : |
China |
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|
Financials (as on) : |
30.09.2012 |
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|
|
Date of Incorporation : |
11.08.2000 |
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|
|
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Com. Reg. No.: |
371600228011118 |
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|
|
Legal Form : |
Shares Limited Company |
|
|
|
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Line of Business : |
Engaged in manufacturing and selling aluminum foil |
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|
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No. of Employees : |
1,079 |
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 : |
Satisfactory |
|
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 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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 and address
Shandong Loften Aluminium Foil Co.,
Ltd.
no. 1568 binbo
avenue, boxing county
shandong
province 256500 PR CHINA
TEL: 86
(0) 543-2161727
FAX: 86
(0) 543-2161727
EXECUTIVE SUMMARY
Date of Registration : August 11, 2000
REGISTRATION NO. : 371600228011118
LEGAL FORM :
SHARES LIMITED COMPANY
REGISTERED CAPITAL :
cny 231,600,000
staff : 1,079
BUSINESS CATEGORY :
manufacturing
REVENUE :
CNY 1,519,456,000 (FROM JAN. 1, TO SEP. 30, 2012)
EQUITIES :
CNY 889,989,000 (AS OF SEP. 30, 2012)
WEBSITE : www.loften.com.cn
E-MAIL : info-ck@loften.cn
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND :
fairly STEADY
GENERAL REPUTATION : fairly good
EXCHANGE RATE : CNY 6.23 = USD
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
***Note: SC’s complete name should be
the heading one, instead of the given name- Shandong Loften Aluminium Co., Ltd., and SC’s correct address should be
the heading one, instead of the - No. 1588 Binbo Street Boxing Shandong.
SC was
established as a limited liabilities company of PRC on August 11, 2000. However, SC changed to
present legal form, and was registered as shares limited company of PRC with State Administration of
Industry & Commerce (SAIC) under registration No.: 371600228011118 on
September 17, 2007.
SC’s Organization Code Certificate
No.: 72498434-0
SC’s registered capital: CNY 231,600,000
SC’s paid-in capital: CNY 231,600,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
|
Legal Form |
Limited Liabilities Company |
Shares Limited Company |
|
Company Name |
Shandong Loften Aluminium Foil
Industry Co., Ltd. |
Shandong Loften Aluminium Foil
Co., Ltd. |
|
|
2010 |
Registered Capital |
CNY 58,000,000 |
CNY 77,500,000 |
|
2011 |
Registered Capital |
CNY 77,500,000 |
CNY 155,000,000 |
|
2012 |
Registered Capital |
CNY 155,000,000 |
CNY 231,600,000 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) (as of November 22, 2012) |
% of Shareholding |
|
Yu Rongqiang |
35.54 |
|
China Fortune International
Trust Co., Ltd. |
10.36 |
|
Xining City Investment &
Management Co., Ltd. |
6.91 |
|
Bank of China-ICBC Credit
Suisse Core Value Equity Securities Investment Fund |
3.45 |
|
Xining Economic & Technical
Development Zone Investment Holding Group Co., Ltd. |
3.45 |
|
Boxing Yinhe Investment Co.,
Ltd. |
2.59 |
|
Bohong Shujun (Tianjin)
Investment Partnership Enterprise (Limited Partnership) |
1.64 |
|
Wang Xiaohua |
1.51 |
|
HFT Fund Company-Bank of
China-Zhonghai Trust No. 1 Asset Management Plan |
0.99 |
|
Tang Qiongshu |
0.86 |
|
Yu Yingli |
0.86 |
|
Other Shareholders |
31.84 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman,
and General Manager |
Yu
Rongqiang |
|
Deputy General Manager |
Pang
Shuzheng |
|
Lin
Lvye |
|
|
Qiao
Xiangqian |
|
|
Hong
Qunli |
|
|
Guo
Maoqiu |
|
|
Mu
Yushan |
RECENT DEVELOPMENT
SC is a listed company in Shenzhen Stock Exchange Market with
the code of 002379.
SHAREHOLDER CHART &
BACKGROUND
Name (as of November 22, 2012)
%
of Shareholding
Yu Rongqiang
35.54
China Fortune International
Trust Co., Ltd.
10.36
Xining City Investment &
Management Co., Ltd.
6.91
Bank of China-ICBC Credit Suisse
Core Value Equity Securities Investment Fund
3.45
Xining Economic & Technical
Development Zone Investment Holding Group Co., Ltd.
3.45
Boxing Yinhe Investment Co.,
Ltd.
2.59
Bohong Shujun (Tianjin)
Investment Partnership Enterprise (Limited Partnership)
1.64
Wang Xiaohua
1.51
HFT Fund Company-Bank of
China-Zhonghai Trust No. 1 Asset Management Plan
0.99
Tang Qiongshu
0.86
Yu Yingli
0.86
Other Shareholders
31.84
n
China Fortune International Trust Co.,
Ltd.
--------------------------------------------------------
Web: www.cfitc.com
MANAGEMENT
Yu
Rongqiang, Legal Representative, Chairman and General Manager
-------------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 40
Ø
Qualification: Junior College
Ø
Working experience (s):
From 1996 to 2000, worked in Boxing Loften Metal
Co., Ltd. as general manager
From 2000 to present, working in SC as legal
representative, chairman and general manager
Deputy
General Manager
---------------------------------
Pang Shuzheng
Lin Lvye
Qiao Xiangqian
Hong Qunli
Guo Maoqiu
Mu Yushan
BUSINESS OPERATION
SC’s registered business scope
includes manufacturing, processing and selling board foil, exporting
its products; importing materials, machinery and equipment, instrument and
parts needed for its production; selling stainless steel plate, galvanized
sheet.
SC is
mainly engaged in manufacturing and selling aluminum foil.
Brand:
LOFTEN
SC’s
products mainly include: PTP pharma foils and soft packing pharma foils for
pharmaceuticals packing; household foils for food packing; container foils that
are used for punched packing containers, such as airline meal boxes and food
packing containers; bottleneck foils for packing beer bottleneck covers; and
cable foils for cable shielding.
SC sources its materials 100%
from domestic market. SC sells 70% of its products in domestic market, mainly
Shanghai and Shandong, and 30% to overseas market, mainly USA, Europe and
Southeast Asia.
The
buying terms of SC include T/T and Credit of 30-60 days. The payment terms of
SC include T/T, L/C and Credit of 30-60 days.
Staff & Office:
--------------------------
SC is
known to have approx. 1,079
staff at present.
SC
owns an area as its operating office & factory of approx. 225,000 sq.
meters at the heading address.
RELATED COMPANY
SC is known to have
5 subsidiaries at present:
n
Shandong Loften Aluminium Foil Products Co., Ltd.
n
Boxing Ruifeng Aluminium Co., Ltd.
n
ShangHai LuShen Aluminium Material Co., Ltd.
n
Qingdao Runfeng Aluminium Foil Co., Ltd.
n
Qingdao Baofeng Aluminium Foil Co., Ltd.
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:
Agricultural Bank of China Boxing Sub-branch
AC#: 15-734901040022818
China
Construction Bank Boxing Sub-branch
AC#:
37001837808050154614
FINANCIALS
Consolidated Balance Sheet
|
Unit:
CNY’000 |
As of Dec. 31, 2011 |
As of Sep. 30, 2012 |
|
663,074 |
676,110 |
|
|
Held for trading financial assets |
0 |
0 |
|
Notes receivable |
163,484 |
179,839 |
|
Accounts
receivable |
144,814 |
167,009 |
|
Advances
to suppliers |
759,857 |
1,083,879 |
|
Other
receivable |
18,023 |
58,717 |
|
Inventory |
449,242 |
446,690 |
|
Other
current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
assets |
2,198,494 |
2,612,244 |
|
Long-term
equity investment |
2,000 |
2,000 |
|
Fixed
assets |
965,182 |
947,030 |
|
Construction
in progress |
236,871 |
583,273 |
|
Engineering
materials |
0 |
20,464 |
|
Intangible
assets |
201,362 |
198,094 |
|
Long-term
prepaid expenses |
1,534 |
1,968 |
|
Deferred
income tax assets |
13,144 |
15,831 |
|
Other
non-current assets |
43,595 |
41,540 |
|
|
------------------ |
------------------ |
|
Total
assets |
3,662,182 |
4,422,444 |
|
|
============= |
============= |
|
Short-term
loans |
1,702,700 |
2,110,957 |
|
Held
for trading financial liabilities |
0 |
0 |
|
Notes
payable |
495,475 |
657,622 |
|
Accounts
payable |
79,443 |
112,904 |
|
Advances
from clients |
22,766 |
29,524 |
|
Payroll
payable |
1,098 |
2,470 |
|
Tax
payable |
-85,702 |
-46,852 |
|
Interest
payable |
0 |
1,858 |
|
Other
payable |
10,463 |
12,356 |
|
Current
liabilities due within one year |
154,750 |
127,000 |
|
Other
current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
2,380,993 |
3,007,839 |
|
Non-current
liabilities |
397,963 |
524,616 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
2,778,956 |
3,532,455 |
|
Equities |
883,226 |
889,989 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
3,662,182 |
4,422,444 |
|
|
============= |
============= |
Consolidated Income Statement
|
Unit:
CNY’000 |
As of Dec. 31, 2011 |
From Jan. 1, to Sep. 30, 2012 |
|
Revenue |
1,791,372 |
1,519,456 |
|
Cost of sales |
1,599,072 |
1,341,488 |
|
Taxes and surcharges |
3,967 |
3,801 |
|
Sales expense |
26,747 |
27,583 |
|
Management expense |
38,240 |
38,628 |
|
Finance expense |
107,971 |
101,057 |
|
Investment
income |
300 |
300 |
|
Non-operating
income |
5,816 |
7,081 |
|
Non-operating expense |
55 |
131 |
|
Profit
before tax |
16,922 |
13,085 |
|
Less:
profit tax |
4,858 |
6,321 |
|
Profits |
12,064 |
6,764 |
Important
Ratios
=============
|
|
As of Dec. 31, 2011 |
As of Sep. 30, 2012 |
|
*Current
ratio |
0.92 |
0.87 |
|
*Quick
ratio |
0.73 |
0.72 |
|
*Liabilities
to assets |
0.76 |
0.80 |
|
*Net
profit margin (%) |
0.67 |
0.45 |
|
*Return
on total assets (%) |
0.33 |
0.15 |
|
*Inventory
/ Revenue ×365/270 |
92
days |
80
days |
|
*Accounts
receivable/ Revenue ×365/270 |
30
days |
30
days |
|
*
Revenue/Total assets |
0.49 |
0.34 |
|
*
Cost of sales / Revenue |
0.89 |
0.88 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l
The revenue of SC appears fairly good.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of sales is average,
comparing with its revenue.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained
in a fair level.
l
SC’s quick ratio is maintained in a
fair level.
l
The inventory of SC appears fairly
large.
l
The accounts receivable of SC appears
average.
l
SC’s short-term loans appear large.
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 average.
l
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. The large amount of short-term loans may be a threat to
SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.96 |
|
|
1 |
Rs.88.67 |
|
Euro |
1 |
Rs.72.45 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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.