MIRA
INFORM REPORT
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Report Date : |
14.03.2012 |
IDENTIFICATION DETAILS
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Name : |
NANJING NO. 2 MACHINE TOOL WORKS |
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Registered Office : |
No. 29 Liquan Road, Jiangning District, Nanjing Jiangsu
Province 211103 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.: |
320100400032754 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
Manufacturing and selling metal cutting machine tools. |
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No. of Employees : |
780 |
RATING & COMMENTS
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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 |
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Maximum Credit Limit : |
USD 1,000,000 |
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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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
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 |
Company name and address
NANJING NO. 2 MACHINE TOOL WORKS
NO. 29 LIQUAN ROAD, JIANGNING DISTRICT, NANJING
JIANGSU PROVINCE 211103 PR CHINA
TEL: 86 (0) 25-86409502/68105599-8038
FAX: 86 (0) 25-86626869
EXECUTIVE SUMMARY
Date of Registration : july 8, 2005
REGISTRATION NO. : 320100400032754
LEGAL FORM : Chinese-foreign equity joint venture
enterprise
REGISTERED CAPITAL : cny 140,000,000
staff :
780
BUSINESS CATEGORY : manufacturing
Revenue :
CNY 301,190,000 (AS OF DEC. 31, 2011)
EQUITIES :
CNY 177,160,000 (AS OF DEC. 31, 2011)
WEBSITE : www.nmt2.com
E-MAIL :
sales@nmt2.com
PAYMENT :
AVERAGE
Recommended Credit Limit: UP TO USD 1,000,000
(PERIODICAL REVIEW)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.32 = 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.:
320100400032754 on July 8, 2005.
SC’s Organization Code Certificate No.:
77398983-4
SC’s registered capital: cny 140,000,000
SC’s paid-in capital: cny 140,000,000
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 |
|
Nanjing Machine Tool Industry (Group) Co.,
Ltd. |
75 |
|
New Great Insight Group Limited (Hong
Kong) |
25 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and
General Manager |
Xu Weiping |
|
Vice Chairman |
Hu Yaping |
|
Director |
Zou Kelin |
|
Zhang Jiancheng |
|
|
Lu Beinin |
|
|
Hua Shoujin |
|
|
Lu Zufei |
|
|
Supervisor |
Gu Yuchang |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Nanjing Machine Tool Industry (Group) Co.,
Ltd. 75
New Great Insight Group Limited (Hong Kong) 25
New Great Insight Group Limited (Hong Kong)
======================================
Registration No.: 1196422
Legal Form: Private
MANAGEMENT
Xu Weiping , Legal
Representative, Chairman and General Manager
---------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 59
Ø
ID# 320104195308170013
Ø
Qualification:
University
Ø
Working
experience (s):
At
present, working in SC as legal representative, chairman and general manager
Hu Yaping , Vice
Chairman
------------------------------------------------
Ø
Gender: M
Ø
Age: 60
Ø
ID# 320106520916201
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as vice chairman
Director
----------
Zou Kelin ID#
320107196412131851
Zhang Jiancheng ID#
320106195809151219
Lu Beining ID#
320103196011210510
Hua Shoujin ID#
320102194709233217
Lu Zufei ID#
320102196510241614
Supervisor
--------------
Gu Yuchang ID# 320113197001153214
BUSINESS OPERATION
SC’s registered business scope includes manufacturing
and selling metal cutting machine tools, plastic processing machinery, general
machinery, repairing its owned precuts; development, technology consulting,
management consulting services of machinery products.
SC is mainly
engaged in manufacturing and selling metal cutting
machine tools.
SC’s products
mainly include:
Gear
Shaping Machine YP5150
CNC
Gear Shaping Machine YWN4232CNC
CNC
Gear Shaping Machine YS51125CNC
CNC
Gear Shaping Machine YS5165CNC
CNC
Gear Shaping Machine YS5150CNC
CNC
Gear Shaping Machine YKB5150
SC sources its materials 100% from domestic
market, mainly Jiangsu. SC sells 75% of its products in domestic market, and
25% to overseas market, mainly U.S.A. and Southeast Asian market.
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.
*Major Customer:
=============
Toral Cast
Precision Technologies (USA)
Staff & Office:
--------------------------
SC is known
to have approx. 780 staff at
present.
SC rents an area
as its operating office & factory of approx. 65,000 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 Nanjing Branch
AC#: N/A
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
|
14,190 |
|
|
Accounts
receivable |
70,560 |
|
Advances to
suppliers |
0 |
|
Other receivable |
3,540 |
|
Inventory |
183,440 |
|
Non-current
assets within one year |
0 |
|
Other current
assets |
78,080 |
|
|
------------------ |
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Current assets |
349,810 |
|
Fixed assets |
220,850 |
|
Construction in
progress |
5,640 |
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Intangible
assets |
0 |
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Long-term
prepaid expenses |
0 |
|
Deferred income
tax assets |
0 |
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Other
non-current assets |
9,360 |
|
|
------------------ |
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Total assets |
585,660 |
|
|
============= |
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Short-term loans |
70,000 |
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Notes payable |
0 |
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Accounts payable |
209,110 |
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Wages payable |
0 |
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Advances from
clients |
0 |
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Other payable |
86,240 |
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Other current
liabilities |
18,400 |
|
|
------------------ |
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Current
liabilities |
383,750 |
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Non-current
liabilities |
24,750 |
|
|
------------------ |
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Total
liabilities |
408,500 |
|
Equities |
177,160 |
|
|
------------------ |
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Total
liabilities & equities |
585,660 |
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|
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
|
Revenue |
301,190 |
|
Cost of sales |
230,040 |
|
Sales expense |
11,630 |
|
Management expense |
25,150 |
|
Finance expense |
7,310 |
|
Profit before
tax |
25,350 |
|
Less: profit tax |
4,130 |
|
21,220 |
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
|
*Current ratio |
0.91 |
|
*Quick ratio |
0.43 |
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*Liabilities
to assets |
0.70 |
|
*Net profit
margin (%) |
7.05 |
|
*Return on
total assets (%) |
3.62 |
|
*Inventory /
Revenue ×365 |
223 days |
|
*Accounts
receivable/ Revenue ×365 |
86 days |
|
*
Revenue/Total assets |
0.51 |
|
* Cost of
sales / Revenue |
0.76 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l
The revenue of SC appears average in its line.
l
SC’s net profit margin is fairly good.
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 large.
l
The accounts receivable of SC is maintained in an
average level.
l
SC’s short-term loans are in an average level.
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 inventory may be a threat to SC’s financial condition. A
credit line up to USD 1,000,000 is recommended upon a periodical review basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.84 |
|
|
1 |
Rs.77.97 |
|
Euro |
1 |
Rs.65.61 |
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.