MIRA
INFORM REPORT
|
Report Date : |
14.06.2012 |
IDENTIFICATION DETAILS
|
Correct Name : |
LAIWU HENGXIANG PLASTIC MACHINERY CO., LTD |
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Registered Office : |
No.8, |
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Country : |
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Date of Incorporation : |
29.10.2009 |
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Com. Reg. No.: |
371220200002806 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacture and sales of
plastic processing machinery |
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No. of Employees : |
25 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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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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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
Laiwu Hengxiang Plastic Machinery Co., Ltd
Currency in this report is Chinese Yuan unless otherwise
stated.
Exchange Rate: 1 USD=6.37 Chinese Yuan
"--"in this report indicates "unavailable" due to insufficient information or "no comments"
ORDER
INFORMATION
|
name |
Laiwu Hengxiang Plastic Machinery Co Ltd. |
|
address |
31 Phoenix Road, High-tech Zone, laiwu 271100 Laiwu Shandong |
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tel. |
86 634 8863499 |
|
fax |
86 634 8863300 |
Note:
1.
The address
provided in the order is SC’s previous address. SC’s present address is as
listed in the report.
2.
SC
mainly deals with manufacture and sales of plastic machinery. That isn’t within
its business scope which is as listed in the report. SC is operated beyond its
business scope. Hence we recommend the client to be cautious of SC’s operation
risks.
3.
Due to
recent intervention of government in the AIC systems, reports of some regions
could be impacted for a certain period. For companies registered in Shandong,
financial information couldn’t be obtained.
EXECUTIVE
SUMMARY
|
DATE OF establishment |
Oct 29th, 2009 |
|
Aic Registration No. |
371220200002806 |
|
REGISTERED LEGAL FORM |
limited liabilities
company |
|
REGISTERED CAPITAL |
500,000.00 |
|
main BUSINESS |
Manufacture and sales of plastic processing machinery. |
|
tax no. |
371202696853975 |
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TURNOVER |
-- |
|
net profit |
-- |
|
total assets |
-- |
|
net worth |
-- |
|
employees |
25 |
|
import and export permits |
yes |
|
EXCHANGE RATE |
1 Usd=6.37CNY (JUN.12th, 2012) |
|
Registered Address |
No.8, Phoenix Rd, Laiwu High-tech Development Zone, Laiwu City,
Shandong Province. |
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Zip Code |
271100 |
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Business Address |
No. 10, Xiangshan Rd, Laiwu High-tech Development Zone, Laiwu City,
Shandong Province. |
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Zip Code |
271100 |
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Telephone |
86 634 8863499/8865499 |
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Fax |
86 634 8863300 |
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SIC Code (China) |
3623 Manufacture of plastic processing equipments. |
REGISTRATION
|
Name (Chinese) |
莱芜市恒翔塑料机械有限公司 |
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Name (English) |
Laiwu Hengxiang Plastic Machinery Co., Ltd |
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Date of Establishment |
Oct 29th, 2009 |
|
Registry |
Administration Bureau of Industry and Commerce – Laiwu Development
Zone (Laiwu City) |
|
Legal Representative |
Dong Hong-tao (董洪涛) |
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AIC Registration Number |
371220200002806 |
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Registered Legal Form |
LIMITED LIABILITIES COMPANY |
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Registered Capital |
500,000.00 |
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Operating Duration |
Oct 29th, 2009 to Oct 28th,
2019 |
|
Business Scope |
Wholesale and retail of
steel products, wood products, plastic products, rubber products, office
supplies, hardware, iron ore, powdered iron, chemical products, etc; Import and export of goods
and technologies. (excluding those forbidden
by government.) |
Limited
liabilities co.
This
form of business in PR China is defined as a legal person. Its registered capital
is contributed jointly by at least two shareholders and no more than fifty.
Shareholders bear limited liability to the extent of shareholding, and the co.
is liable for its debts only to extent of its total assets. The characteristics
of this form of co. are as follows:
Upon
the establishment of the co., an investment certificate is issued to the each
of shareholders.
The
board of directors is comprised of three to thirteen members.
The minimum registered capital for a
co. is listed as follows:
-manufacturing
co. : RMB 500,000.00
-trading
&wholesaling co. : RMB 500,000.00
-retailing
co. : RMB 300,000.00
-consultancy
& service co. : RMB 100,000.00
Shareholders
may take their capital contributions in cash or by means of tangible assets or
intangible assets such as industrial property and non-patented technology.
Cash
contributed by all shareholders must account for at least 50% of the registered
capital while contribution by intangible assets must not exceed 20% of the
registered capital.
Existing
shareholders have pre-exemption right to purchase shares of the co. offered for
sale by the other shareholders and to subscribe for the newly increased
registered capital of the co.
REGISTRATION
INFO: AVAILABLE
FINANCIAL
REPORTS: AVAILABLE
FIELD
INVESTIGATION
1. SC’s
business income comes mainly from plastic machinery equipments including
agricultural film machines, PVC tube machines, etc. Its products are sold both
domestically and internationally. SC’s sales business is developed both
directly and indirectly to end customers. Its clients are mainly domestic and
international manufacture enterprises, traders and distributors of agricultural
products including agricultural film, greenhouse film, etc. The industry of
plastic machinery equipments is an industry with fierce competition. There are
a lot of similar enterprises in the local place as SC’s competitors. With short
history, it hasn’t accumulated certain amount of customers and its popularity
in domestic and international market is limited. Generally speaking, SC’s
competitiveness is average in the local industry.
2. Located in the middle of Shandong Province, Laiwu City
is the important iron smelting center of China and steel manufacture & processing
base of Shandong Province. In 2010, the total production value of Laiwu City
was 54.633 billion CNY, increasing 12% year/year; the increase value of first
industry was 3.861 billion CNY, increasing 3.1% year/year; the increase value
of second industry was 33.018 billion CNY, increasing 12.2% year/year; the
increase value of third industry was 17.754 billion CNY, increasing 13%
year/year. As a domestic owned enterprise dealing with manufacture and sales of
plastic machinery equipments, SC shares no favorable policies provided by the
local government.
SHAREHOLDERS
AND SHARES
As indicated in the following table:
|
Shareholder |
Capital
Subscribed |
Percentage |
|
Dong Hongtao |
500,000.00 |
100% |
|
Total |
500,000.00 |
100% |
AFFILIATE(S)
No affiliates of subject company is found after checking.
MANAGEMENT
|
Name |
Dong Hongtao |
|
Gender |
Male |
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Title |
Legal Representative |
|
Education |
-- |
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Working experience |
Over 5 years’ working experience and over 5
years’ management experience. |
NUMBER OF EMPLOYEES
Employees: 25
Management Staff: 5
Recent recruitment: No
BANKERS INFORMATION
N/A
OFFICE FACILITIES
|
Geographic Location |
No.10, Xiangshan Rd, Laiwu High-tech Zone, Laiwu City, Shandong
Province. |
|
Area |
500 square meters |
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Environment |
Development Zone. |
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Traffic condition |
Convenient (surrounded by Phoenix Rd, Huiyuan Avenue, Yuanshan Rd, etc.) |
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Purpose |
Office. |
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Property Ownership |
Rented |
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Other address |
-- |
WEBSITE
|
Website |
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|
e-mail |
-- |
|
Operation status |
Operational |
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Copyright |
Copyright reserved by SC. |
|
Language |
Chinese. |
TRADEMARKS
After checking with the Trademark Office of Chinese Administration Bureau of Industry, no trademarks was found.
PATENTS
|
Total patents |
1 |
|
Application No. |
201120229925.5 |
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Application date |
July 1st, 2011 |
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Patent name |
High-speed drip irrigation belt production unit. |
MAIN
PRODUCTS & SERVICES
|
Main business |
Manufacture and sales of plastic processing
machinery. |
|
Products and services |
SC mainly deals with research, development,
manufacture and sales of plastic processing machinery. Its products include
inflation film, pipes, packages, drip irrigation tape unit, agricultural
greenhouse film unit, agricultural film unit, PE pipes unit, PVC pipe unit,
PE packaging film unit, etc. SC’s products are mainly used in processing and
manufacture of agricultural products. |
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Picture of specific products |
|
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Annual production capacity |
It can produce 10 agricultural film units per
month. |
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Plants and equipments |
-- |
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Awards & Honors |
-- |
|
Certificates / licenses |
ISO9001 International Quality System
Certification. |
SALES
INFORMATION
|
Domestic sales |
80% |
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Regions |
All
over China |
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Major domestic clients |
Film production
factories, traders, etc. |
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Competitors |
LAIWU JINGRUI PLASTIC MACHINERY CO. LTD; DALIAN RUBBER PLASTIC MACHINERY CO. LTD; RUIAN TIANYUAN PACKAGING MACHINERY CO. LTD. |
|
Payment terms |
Prompt payment; on credit |
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Export |
20% |
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Regions |
Southeast
Asia, Asia, Europe, etc. |
|
Major overseas clients |
-- |
|
Payment terms |
L/C, T/T |
|
SC’s products are sold
both domestically and internationally. Its products are mainly used in manufacture
of agricultural products including mulching film, greenhouse film, irrigation
pipes, etc. With short history, its sales network needs to be further
developed. |
|
|
The above information was
confirmed by SC’s employee |
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PURCHASE
INFORMATION
|
Main Commodities Purchased |
Transducer, electrical machine, draught
fans, production equipments, etc. |
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Number of Major Suppliers |
About 5 |
|
Region 采购地区 |
Domestic:95 % Import: 5% |
|
Major suppliers |
SHANDONG SHENCHUAN ELECTRICAL TECHNOLOGY CO.
LTD; HENGSHUI ELECTRIC MOTORS CO. LTD; LAIWU XINGCHEN NETWORK CO. LTD, etc. |
|
Main Terms of Payment |
Local: Prompt payment; on
credit Import: L/C, T/T |
|
SC’s raw materials and production equipments
are mainly purchased domestically. It can also import spare parts, etc
according to its clients’ requests. With fixed suppliers, SC has stable
sources of goods. |
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The above information was confirmed by SC’s employee |
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CREDIT
|
Name of supplier |
SHANDONG SHENCHUAN
ELECTRICAL TECHNOLOGY CO. LTD |
|
Main commodities and service supplied |
Transducers, etc. |
|
Interviewee |
Manager Lin of Sales Department. |
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Telephone of Interviewee |
86 13375339987 |
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Payment comment |
The investigated person said SC’s overall
credit status is normal. Its default activities are all within the contract. |
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Name of supplier |
LAIWU XINGCHEN NETWORK
CO. LTD |
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Main commodities and service supplied |
Network construction, etc. |
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Interviewee |
Mr. Zhang of Technology Department. |
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Telephone of Interviewee |
86 634 5600226 |
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Payment comment |
The investigated person confirmed SC’s
website was designed by their company, but was not clear about its payment
status. |
LITIGATION
RECORDS
After
checking with China Court organization, the local court website and other major
searching websites, no litigation record related to SC in the latest three
years is found.
OTHER
ADVERSE MEDIA INFORMATION
NO
FINANCE
According to SC’s staff, it is a medium sized enterprise in the local industry. Its turnover of 2011 was between 30 million CNY and 40 million CNY.
Important Ratios:
|
|
2010
Industry Financial Indices (155*) |
|
Return on net
assets (%) |
16.54 |
|
Return on total
assets (%) |
7.58 |
|
Net profit
margin (%) |
7.87 |
|
Turnover of
total assets |
0.75 |
|
Turnover of
current assets |
1.08 |
|
Turnover days of
account receivable |
102.41 |
|
Inventory
turnover days |
117.56 |
|
Asset liability
ratio (%) |
53.98 |
|
Current ratio |
1.41 |
|
Quick ratio |
0.96 |
Analysis of financial indicator
SC mainly deals with manufacture and sales of agricultural
plastic machinery including agricultural canopy film units, agricultural film
units, PVC pipe units, etc and belongs to plastic processing equipment
industry. The plastic processing equipment industry has been developing stably
in recent years and it will be developing stably in the future. Established in
2009, SC hasn’t accumulated abundant industry experience. It has a few
employees and limited production capacity. Its technology strength is poor.
SC’s competitiveness is below average in the local industry. Laiwu City, SC’s
location is a developed city with good industrial production system. The overall economy environment of SC is good.
INDUSTRY
PROFILE
Industry
SIC Code (China): 3623 Manufacture of plastic
processing equipments.
Description:
Manufacture of machinery and device that are used in plastic processing
industry.
Status Quo & Trend
In 2011, China’s favorable
policies bring great development space to the plastic processing equipments
industry. China’s plastic processing equipments industry is predicated to be
developing stably in the future years.
As the national economy is
developing sustainably, China’s plastic processing equipment industry has been
developing fast in recent years. From January to November in 2011, China’s
total production volume of plastic processing equipments was 280,000,
decreasing 1.12% year/year. Also, there exists regional imbalance in
development of plastic processing equipment industry. Manufacture activities of
plastic processing equipment are only concentrated in Zhejiang Province,
Guangdong Province and Shandong Province. In addition, China’s plastic
processing equipments industry still falls behind developed countries.
Industry Associations
|
Name of association |
Membership of subject (Yes/No) |
|
Laiwu Plastic Machinery Industry Association |
Partisan. |
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China
Engineering Machinery Industry Association |
No |
|
China General Machinery Industry Association |
No |
|
China
Plastic Machinery Industry Association |
No |
GENERAL
COMMENTS
Established in October, 2009, SC is engaged in
manufacture and sales of agricultural plastic machinery including agricultural
greenhouse film units, agricultural film units, PVC pipe units, etc. Its
products are mainly sold to domestic and overseas agricultural products
manufacture enterprises, traders, distributors, etc. With short history, its
purchase and sales channels are not stable and its industry experience needs to
be accumulated. With low registered capital and individual shareholders, SC’s
financing capacity and risk resisting capacity need to be improved.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.85 |
|
UK Pound |
1 |
Rs.86.88 |
|
Euro |
1 |
Rs.69.88 |
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 |
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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 |
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<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.