MIRA
INFORM REPORT
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Report Date : |
10.11.2012 |
IDENTIFICATION DETAILS
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Name : |
ZHEJIANG GEARTECH INDUSTRIAL CO., LTD. |
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Registered Office : |
No. C Area, Binhai Industrial Zone, Economic & Technological
Development Zone, |
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Country : |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
20.06.2006 |
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Com. Reg. No.: |
331000000019088 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing and Selling Coating Equipment, Galvanizing Equipment. |
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No. of Employees : |
100 |
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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
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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.
Source
: CIA
COMPANY NAME AND ADDRESS
ZHEJIANG GEARTECH
INDUSTRIAL CO., LTD.
NO. C AREA, BINHAI INDUSTRIAL ZONE, ECONOMIC & TECHNOLOGICAL DEVELOPMENT ZONE, TAIZHOU, ZHEJIANG PROVINCE 318000 PR CHINA
TEL: 86 (0) 576-88128786/88128787
FAX: 86 (0) 576-88128785
EXECUTIVE SUMMARY
Date of Registration : june 20, 2006
REGISTRATION NO. : 331000000019088
LEGAL FORM : Limited liabilities company
CHIEF EXECUTIVE :
ruan heping (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : cny 21,880,000
staff :
100
BUSINESS CATEGORY : manufacturing
Revenue :
CNY 53,338,000 (AS OF DEC. 31,
2011)
EQUITIES :
CNY 22,173,000 (AS OF DEC. 31, 2011)
WEBSITE : www.geartech.cn
E-MAIL :
wzb@geartech.cn
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.24 = 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
***Note: The given
company name (Zhejiang Geartech Machinery Co., Ltd.) was SC’s former one.
SC was established as a limited liabilities company of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.:
331000000019088 on june 20, 2006.
SC’s Organization Code Certificate No.:
78968674-X
SC’s Tax No.: 33100178968674X
SC’s registered capital: cny 21,880,000
SC’s paid-in capital: cny 21,880,000
Registration Change Record:-
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Date |
Change of Contents |
Before the change |
After the change |
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2011 |
Company Name |
Zhejiang Geartech Machinery Co., Ltd. |
Zhejiang Geartech Industrial Co., Ltd. |
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Registered Capital |
CNY 13,880,000 |
cny 21,880,000 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
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Name of Shareholder (s) |
% of Shareholding |
|
Ruan Heping |
70 |
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Liang Meidan |
30 |
SC’s Chief Executives:-
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Position |
Name |
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Legal Representative, Chairman, and General Manager |
Ruan Heping |
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Supervisor |
Liang Meidan |
RECENT DEVELOPMENT
SC has got the certificate ISO9001.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Ruan Heping 70
Liang Meidan 30
MANAGEMENT
Ruan Heping, Legal
Representative, Chairman and General Manager
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Gender: M
Age: 35
ID# 332603197712196710
Qualification: University
Working experience (s):
From 2006 to present, working in SC as legal representative, chairman
and general manager
Also working in Taizhou Geartech Extrusion Equipment Co., Ltd. as legal
representative and chairman
Liang Meidan,
Supervisor
----------------------------------------------
Gender: F
Age: 36
ID# 332603197612306062
Qualification: University
BUSINESS OPERATION
SC’s registered business scope includes manufacturing and
selling plastic raw materials compounding machinery, plastic molding machines,
coating equipment, galvanizing equipment, light box cloth manufacturing
equipment, non-woven manufacturing equipment, metal structure, aluminum panels;
selling decorative materials, building materials, metal materials; importing
and exporting goods and technology.
SC is mainly engaged in manufacturing and selling coating equipment,
galvanizing equipment.
Brand: GEARTECH
SC’s products mainly include:
JET-1300/1600/2000Aluminum Composite Panel
Production Line
JETHDG-1250 Hot-Dip Galvanizing Line
JETX-150/30-60 Steel Coil Coating Line
JETDC-1300CL/JETDC-1600CL Aluminum Coil Coating
Line
JETPL-1250 Push-Pull Pickling Line
Etc.
SC sources its materials 100% from domestic market, mainly Zhejiang. SC
sells 40% of its products in domestic market, and 60% to overseas market,
mainly U.S.A., Europe, Mid East 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. 100
staff at present.
SC owns an area as its operating office & factory of approx. 38,000
sq. meters at the heading address.
RELATED COMPANY
Taizhou Geartech Extrusion Equipment Co., Ltd.
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Date of Registration: September 29, 2004
Registration No.: 3310042004892
Legal Form: Limited Liabilities
Company
Chief Executive: Ruan Heping
Registered Capital: CNY 3,180,000
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 Taizhou Branch Luqiao Sub-branch
AC#: 920101040100359
FINANCIALS
Balance Sheet
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Unit: CNY’000 |
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
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2,683 |
7,334 |
9,412 |
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Notes receivable |
0 |
0 |
50 |
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Accounts receivable |
-4,956 |
2,760 |
9,615 |
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Advances to suppliers |
0 |
0 |
0 |
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Other receivable |
3,510 |
7,361 |
7,150 |
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Inventory |
8,259 |
6,938 |
17,483 |
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Prepaid expenses |
101 |
0 |
0 |
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Other current assets |
0 |
0 |
0 |
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------------------ |
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Current assets |
9,597 |
24,393 |
43,710 |
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Fixed assets |
13,347 |
13,081 |
13,736 |
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Construction in progress |
0 |
0 |
0 |
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Intangible assets |
5,303 |
5,190 |
4,895 |
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Long-term prepaid expenses |
0 |
0 |
0 |
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Deferred assets |
196 |
137 |
27 |
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Other non-current assets |
0 |
0 |
0 |
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Total assets |
28,443 |
42,801 |
62,368 |
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Short-term loans |
12,800 |
13,600 |
21,000 |
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Notes payable |
1,801 |
9,325 |
14,991 |
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Accounts payable |
2,001 |
1,638 |
4,991 |
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Wages payable |
0 |
0 |
0 |
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Tax payable |
-1,337 |
-983 |
-968 |
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Advances from clients |
0 |
4,759 |
10 |
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Other payable |
0 |
37 |
164 |
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Other non-payment |
15 |
39 |
7 |
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Other current liabilities |
0 |
0 |
0 |
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Current liabilities |
15,280 |
28,415 |
40,195 |
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Non-current liabilities |
0 |
0 |
0 |
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Total liabilities |
15,280 |
28,415 |
40,195 |
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Equities |
13,163 |
14,386 |
22,173 |
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Total liabilities & equities |
28,443 |
42,801 |
62,368 |
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Income Statement
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Unit: CNY’000 |
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
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Revenue |
13,170 |
33,102 |
53,338 |
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Cost of sales |
10,512 |
28,781 |
48,069 |
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Taxes and surcharges |
11 |
60 |
64 |
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Sales expense |
255 |
658 |
872 |
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Management expense |
1,466 |
1,988 |
3,082 |
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Finance expense |
785 |
836 |
1,325 |
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Subsidy income |
11 |
170 |
40 |
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Non-business income |
0 |
1 |
115 |
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Non-business expense |
30 |
135 |
76 |
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Profit before tax |
123 |
841 |
297 |
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Less: profit tax |
0 |
209 |
147 |
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123 |
632 |
150 |
Important Ratios
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As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
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*Current ratio |
0.63 |
0.86 |
1.09 |
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*Quick ratio |
0.09 |
0.61 |
0.65 |
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*Liabilities to assets |
0.54 |
0.66 |
0.64 |
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*Net profit margin (%) |
0.93 |
1.91 |
0.28 |
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*Return on total assets (%) |
0.43 |
1.48 |
0.24 |
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*Inventory / Revenue ×365 |
229 days |
77 days |
120 days |
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*Accounts receivable/ Revenue ×365 |
-- |
31 days |
66 days |
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* Revenue/Total assets |
0.46 |
0.77 |
0.86 |
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* Cost of sales / Revenue |
0.80 |
0.87 |
0.90 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
The revenue of SC appears average, and it was rising year by year.
SC’s net profit margin is average in three years.
SC’s return on total assets is average in three years.
SC’s cost of goods sold is average, comparing with its revenue.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a fair level in 2009 and 2010,
normal in 2011.
SC’s quick ratio is maintained in a poor level in 2009, fair in 2010 and
2011.
The inventory of SC appears large in 2011.
The accounts receivable of SC is maintained in an average level in 2010
and 2011.
The short-term loan of SC appears large.
SC’s revenue is in a fair 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. The large amount of inventory and short-term loans may be a threat
to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.34 |
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|
1 |
Rs.86.97 |
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Euro |
1 |
Rs.69.43 |
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 |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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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 |
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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.