MIRA
INFORM REPORT
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Report Date : |
20.11.2012 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
No. 187, |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
21.11.2000 |
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Com. Reg. No.: |
350211200007793 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing and selling roll forming machine. |
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No. of Employees : |
300 |
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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 (31.03.2012) |
Current Rating (30.06.2012) |
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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 |
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
XIAMEN ZHENG LIMING METALLURGICAL MACHINERY CO., LTD.
NO. 187, ZHENNAN 2ND ROAD, TONG’AN DISTRICT, XIAMEN
FUJIAN PROVINCE 361100 PR CHINA
TEL: 86 (0) 592-6385811/6770380
FAX: 86 (0) 592-6385810
EXECUTIVE SUMMARY
Date of Registration : november 21, 2000
REGISTRATION NO. : 350211200007793
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL : CNY 6,000,000
staff :
300
BUSINESS CATEGORY : manufacturing
Revenue :
CNY 165,523,000 (AS OF DEC. 31,
2011)
EQUITIES :
CNY 73,757,000 (AS OF DEC. 31, 2011)
WEBSITE : www.xmliming.com.cn
E-MAIL :
info@xmliming.com
PAYMENT :
AVERAGE
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 limited liabilities company of PRC with State Administration of Industry
& Commerce (SAIC) under registration No.: 350211200007793
on November 21, 2000.
SC’s Organization Code Certificate No.:
70545895-1
SC’s Tax No.: 350205705458951
SC’s registered capital: CNY 6,000,000
SC’s paid-in capital: CNY 6,000,000
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:-
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Name of Shareholder (s) |
% of Shareholding |
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Huang Yizhong |
70 |
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Huang Yixun |
30 |
SC’s Chief Executives:-
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Position |
Name |
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Legal Representative, Chairman, and
General Manager |
Huang Yizhong |
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Deputy General Manager |
Huang Yixun |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Huang Yizhong 70
Huang Yixun 30
MANAGEMENT
Huang Yizhong , Legal Representative, Chairman and General
Manager
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Ø
Gender: M
Ø
Age: 53
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as legal representative,
chairman and general manager
Also working in Xiamen
Liming Machinery Co., Ltd. as legal
representative
Huang Yixun , Deputy
General Manager
----------------------------------------------------------------
Ø
Gender: M
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as deputy general manager
BUSINESS OPERATION
SC’s registered
business scope includes designing & manufacturing roll forming machine,
intelligent CNC slitting folder; processing & installing metal pressure
steel plate and metal composite insulation board; selling hardware; exporting
self-made products and technology, importing the needed machinery equipment,
accessories, raw & supplementary materials and technology.
SC is mainly engaged
in manufacturing and selling roll forming machine.
SC’s products
mainly include: un-coiler, roll former, accessories, curving M/C, CNC slitting
folder, urethane-foaming, slitting-M/C, profiles.
SC sources its materials 99% from domestic market, and 1% from overseas market. SC sells 60% of its products in domestic market, and 40% to overseas market, mainly Southeast Asia.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
*Major Customers:
==============
R Maye & Son Mfg. Co.
Pacific Metals Trading, Inc.
*Major Supplier:
============
Zhangzhou Guoli Trading Co., Ltd.
Staff & Office:
--------------------------
SC is known
to have approx. 300 staff at
present.
SC owns an area as
its operating office & factory of approx. 50,000 sq. meters at the heading
address.
RELATED COMPANY
n
Xiamen Liming Machinery Co., Ltd.
--------------------------------------------------
Date of Registration: June 26, 1993
Registration No.: 350212000000112
Legal Form: Limited Liabilities
Company
Registered Capital: CNY 6,000,000
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’s suppliers
declined to make any comments.
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:
China
Construction Bank Xinglin Sub-branch
AC#:
35101536001050002597
FINANCIALS
Balance Sheet
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Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
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20,466 |
14,888 |
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Notes receivable |
1,263 |
1,960 |
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Accounts
receivable |
0 |
0 |
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Advances to
suppliers |
5,818 |
14,208 |
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Other receivable |
430 |
1,222 |
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Inventory |
21,898 |
39,352 |
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Non-current
assets within one year |
0 |
0 |
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Other current
assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
49,875 |
71,630 |
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Fixed assets |
28,832 |
29,091 |
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Construction in
progress |
3,245 |
12,195 |
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Intangible
assets |
15,774 |
15,361 |
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Long-term
prepaid expenses |
0 |
0 |
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Deferred income
tax assets |
0 |
0 |
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Other
non-current assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
97,726 |
128,277 |
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============= |
============= |
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Short-term loans |
0 |
20,000 |
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Notes payable |
0 |
0 |
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Accounts payable |
0 |
0 |
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Wages payable |
551 |
689 |
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Taxes payable |
-1,558 |
983 |
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Advances from
clients |
30,675 |
29,076 |
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Other payable |
2,699 |
3,730 |
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Other current
liabilities |
6 |
42 |
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------------------ |
------------------ |
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Current
liabilities |
32,373 |
54,520 |
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Non-current
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
32,373 |
54,520 |
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Equities |
65,353 |
73,757 |
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Total
liabilities & equities |
97,726 |
128,277 |
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Income Statement
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Unit: CNY’000 |
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
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Revenue |
119,842 |
165,523 |
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Cost of sales |
96,503 |
135,226 |
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Taxes and surcharges |
191 |
133 |
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Sales expense |
4,811 |
7,365 |
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Management expense |
10,641 |
12,766 |
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Finance expense |
-281 |
-322 |
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Profit before
tax |
8,778 |
11,009 |
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Less: profit tax |
745 |
969 |
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8,033 |
10,040 |
Important Ratios
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As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
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*Current ratio |
1.54 |
1.31 |
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*Quick ratio |
0.86 |
0.59 |
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*Liabilities
to assets |
0.33 |
0.43 |
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*Net profit
margin (%) |
6.70 |
6.07 |
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*Return on
total assets (%) |
8.22 |
7.83 |
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*Inventory /
Revenue ×365 |
67 days |
87 days |
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*Accounts
receivable/ Revenue ×365 |
-- |
-- |
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*
Revenue/Total assets |
1.23 |
1.29 |
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* Cost of
sales / Revenue |
0.81 |
0.82 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l
The revenue of SC appears fairly good, and it was
rising in 2011.
l
SC’s net profit margin is fairly good in both
years.
l
SC’s return on total assets is fairly good in both
years.
l
SC’s cost of sales is average, comparing with its
revenue.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC appears large.
l
SC has no accounts receivable in both years.
l
SC’s short-term loans are in an average level in
2011.
l
SC’s revenue is in an average 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.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.97 |
|
UK Pound |
1 |
Rs.87.50 |
|
Euro |
1 |
Rs.70.16 |
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 |
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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 |
|
<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.