MIRA
INFORM REPORT
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Report Date : |
17.11.2012 |
IDENTIFICATION DETAILS
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Name : |
NINGBO HONGYU INDUSTRIAL CO., LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
28.12.2003 |
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Com. Reg. No.: |
330206000104992 |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
Subject is
engaged in researching, developing and
manufacturing of auto shock absorbers
and other key spare parts of cars |
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No. of Employees : |
300 employees |
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 : |
Slow but Correct |
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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
|
Country Name |
Previous Rating (31.03.2012) |
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.
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Source : CIA |
Company name & address
NINGBO
HONGYU INDUSTRIAL CO., LTD.
No. 668 fuchun
river road, beilun district, ningbo city,
zhejiang, 315824 PR
CHINA
TEL: 86 (0) 574-86817923/86811166-6400 FAX: 86 (0) 574-86811166-6404
EXECUTIVE SUMMARY
INCORPORATION DATE : DEC. 28, 2003
REGISTRATION NO. :
330206000104992
REGISTERED LEGAL FORM : ONE-PERSON LIMITED LIABILITY COMPANY
STAFF STRENGTH :
300
REGISTERED CAPITAL : CNY 93,952,600
BUSINESS LINE :
R&D, MANUFACTURING
TURNOVER :
CNY 46,840,000 (AS OF DEC. 31, 2011)
EQUITIES :
CNY 82,700,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.2283= USD 1
Adopted abbreviations:
ANS - amount not stated
NS - not stated SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Renminbi
SC was registered as a Chinese-foreign equity joint venture
enterprise at local Administration for Industry &
Commerce (AIC - The official body of issuing and renewing business license) on
Dec. 28, 2003 and then changed into the present ownership
Company Status: One-person Limited Liability
Company Single person LLC refers to a
limited liability company set up by only one natural person or legal person
as the single shareholder of it. The minimum registered capital
of Single person LLC is CNY 100,000. The shareholder’s capital contributes,
as set out by the articles of associations should be a lump-sum payment in
full. One natural person can only
invest in and set up one limited liability company, which is not permitted
to invest in and set up a new Single person LLC. As to any one-person limited
liability company, the sole-investor nature of the natural person or legal
person shall be indicated in the registration documents of the company and
shall be indicated in the business license thereof as well. The regulation of Single person
LLC should be set up by the shareholder The regulation of Single person
LLC has no shareholder meeting.
SC’s registered business
scope includes developing and manufacturing auto shock absorbers and
other key spare parts of cars; importing
and exporting various goods and technologies (excluding
goods or technologies limited or
forbidden by state).
SC is mainly
engaged in researching, developing and manufacturing
of auto shock absorbers and other key
spare parts of cars.
Mr. Zheng Nianhui
is legal representative, chairman and general manager of SC at present.
SC is known
to have approx. 300 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of
Ningbo. Our checks reveal that SC owns the premise with about 73,000㎡.
www.addchina.com The web belongs
to ADD Industry (
Changes of its
registered information are as follows:
|
Date
of change |
Item |
Before
the change |
After
the change |
|
Unknown |
Registered Legal Form |
Chinese-foreign equity joint venture
enterprise |
Present one |
Tax Registration Certificate No.: 33020675628252X
MAIN SHAREHOLDERS:
Name %
of Shareholding
ADD Industry (Zhejiang) Corporation
Limited 100
Registration No.: 331021000007607
Incorporation Date: Aug. 20, 1998
Registered Capital: CNY 80,000,000
Registered legal form: Shares Limited
Company
Legal Representative: Mr. Zheng Nianhui
Website: www.addchina.com
Tel: 86 (0) 576-87278888
Fax: 86(0) 576-87278887
Legal
Representative, Chairman and General Manager:
Mr. Zheng Nianhui is currently responsible for the overall management of SC.
Working
Experience(s):
At present Working in SC as legal representative, chairman and general manager.
Also working in ADD Industry (Zhejiang) Corporation Limited, Taizhou Jiayu Import & Export Co., Ltd. and Zhejiang Jiayu Industrial Co., Ltd. as legal representative
Note: the given person Zhangling is no
longer working in the subject company.
SC is mainly
engaged in researching, developing and manufacturing
of auto shock
absorbers and other key spare parts of cars.
SC’s products mainly include: twin tubes shock
absorber, strut cartridge
absorber, shock absorber with spring seat, gasbag shock absorber, etc.
SC sources its materials 100% from domestic
market. SC sells 60% of its products in domestic
market, and 40% to overseas market, mainly to East Asia and Africa.
The buying terms of SC include Check, T/T and Credit of
30-60 days. The payment terms of SC include Check, T/T, L/C and Credit of 30-60
days.
Note:
SC’s management declined to release its major clients and suppliers.
Zhejiang Jiayu Industrial Co., Ltd. (literal translation)
======================================
Registration No.: 330600400000038
Incorporation Date: Sep. 26, 2005
Registered Capital: CNY 91,053,956
Registered legal form: One-person Limited
Liability Company
Legal Representative: Mr. Zheng Nianhui
Taizhou Jiayu Import & Export Co., Ltd. (literal
translation)
======================================
Registration No.: 331021000045559
Incorporation Date: Feb. 13, 2009
Registered Capital: CNY 5,000,000
Registered legal form: One-person Limited
Liability Company
Legal Representative: Mr. Zheng Nianhui
Overall payment appraisal:
( ) Excellent (
) Good (X) Average (
) Fair ( ) Poor
( ) Not yet 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.
No bank
information was found during our checks with the local Administration for
Industry and Commerce. And SC declined to release its banking details.
Balance Sheet
Unit: CNY’000
|
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as of Dec. 31, 2011 |
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Cash & bank |
210 |
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Inventory |
16,210 |
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Accounts
receivable |
12,200 |
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Short-term
investment |
0 |
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Dividends
receivable |
0 |
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Interest
receivable |
0 |
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Subsidies
receivable |
0 |
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Advances to
suppliers |
1,880 |
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Notes receivable |
0 |
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Other
receivables |
80 |
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Prepaid expenses |
0 |
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------------------ |
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Current assets |
30,580 |
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Fixed assets net
value |
87,190 |
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Long term
investment |
0 |
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Projects under
construction |
3,380 |
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Intangible
assets |
7,400 |
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------------------ |
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Total assets |
128,550 |
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============= |
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Short loans |
0 |
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Accounts payable |
18,040 |
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Advances from
clients |
100 |
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Accrued payroll |
1,090 |
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Welfares payable |
0 |
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Dividends
payable |
0 |
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Taxes payable |
-3,870 |
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Accrued expenses |
0 |
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Other payable to
government |
0 |
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Other accounts
payable |
30,490 |
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------------------ |
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Current
liabilities |
45,850 |
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Long term
liabilities |
0 |
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------------------ |
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Total
liabilities |
45,850 |
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Equities |
82,700 |
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------------------ |
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Total liabilities
& equities |
128,550 |
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============= |
Income Statement
Unit: CNY’000
|
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as of Dec. 31,
2011 |
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Turnover |
46,840 |
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Cost of goods
sold |
43,910 |
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Taxes
and additional of main operation |
0 |
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Sales expense |
250 |
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Management expense |
6,690 |
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Finance expense |
0 |
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Non-operating
income |
0 |
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Non-operating expense |
0 |
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Asset impairment
loss |
810 |
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Profit before
tax |
-4,820 |
|
Less: profit tax |
0 |
|
Profits |
-4,820 |
Important Ratios
=============
|
|
as
of Dec. 31, 2011 |
|
*Current ratio |
0.67 |
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*Quick ratio |
0.31 |
|
*Liabilities
to assets |
0.36 |
|
*Net profit
margin (%) |
-10.29 |
|
*Return on total
assets (%) |
-3.75 |
|
*Inventory
/Turnover ×365 |
126 days |
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*Accounts
receivable/Turnover ×365 |
95 days |
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*Turnover/Total
assets |
0.36 |
|
* Cost of
goods sold/Turnover |
0.94 |
PROFITABILITY: FAIR
l
The turnover of SC appears average in its line.
l
SC’s net profit margin is poor.
l
SC’s return on total assets is fair.
l
SC’s cost of goods sold is fairly high, comparing
with its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is fair.
l
SC’s quick ratio is poor.
l
SC’s inventory is large in 2011.
l
The accounts receivable of SC appears
fairly large in 2011.
l
SC has no short-term loan in 2011.
l
SC’s turnover is poor, 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 stable.
SC is considered medium-sized in its line with fairly stable
financial conditions. The large amount of inventory could be the threat to SC’s financial
condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.99 |
|
UK Pound |
1 |
Rs.87.21 |
|
Euro |
1 |
Rs.70.22 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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 |
|
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 |
|
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NB |
New Business |
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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.