MIRA
INFORM REPORT
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Report Date : |
22.11.2012 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
No. 25, Jinsuo Road, Hi-Tech Development Zone, Zhengzhou City, Henan
Province, 450001 Pr |
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Country : |
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Financials (as on) : |
31.08.2012 |
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Date of Incorporation : |
31.10.2001 |
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Com. Reg. No.: |
410199100015662 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
manufacturing and selling drying equipment |
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No. of Employees : |
110 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 : |
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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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
zhengzhou zhongyuan drying Technique co., ltd.
no. 25, jinsuo
road, hi-tech development zone, zhengzhou city,
henan province,
450001 PR CHINA
TEL: 86 (0)
371-67993079/67998888-8308 FAX:
86 (0) 371-67996815/67980016
EXECUTIVE SUMMARY
INCORPORATION DATE : oct. 31, 2001
REGISTRATION NO. : 410199100015662
REGISTERED LEGAL
FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH : 110
REGISTERED CAPITAL : CNY 1,565,000
BUSINESS LINE : MANUFACTURING
TURNOVER : CNY 81,220,000 (Jan. 1
to aug. 31, 2012)
EQUITIES : CNY 4,840,000 (AS OF aug. 31, 2012)
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY
6.23 = 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
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders contribute its registered
capital jointly. 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 CNY 30,000. 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 30% 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.
SC was registered as a limited liabilities co. at local Administration
for Industry & Commerce (AIC - The official body of issuing and renewing
business license) on October 31, 2001.
SC’s registered business scope includes manufacturing chemical
fiber equipment, scientific research, design, manufacture, service, and
consultation of drying engineering equipment; exporting self-made products and
technology, importing needed mechanical equipment, spare parts, raw materials and
technology, excluding the items prohibited by the state.
SC is mainly
engaged in manufacturing and selling drying equipment.
Mr.
Han Guozheng has been the legal representative and chairman of SC since 2001.
SC is known to have approx. 110 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the development zone of Zhengzhou. Detailed
information of the premise is unknown.
http://www.drytec.com.cn The
design is professional and the content is well organized. At present it is both
in Chinese and English versions.
E-mail: zzzygz@vip.163.com
Changes
of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
Unknown |
Registration No. |
4101011110223 |
410199100015662 |
MAIN
SHAREHOLDERS:
Name % of Shareholding
Han Guozheng 33.5
Hai Zhi 16.5
Sang Xiangdong 43.8
Zhang Zhiguo 6.2
Legal
representative,
chairman and general manager:
Mr. Han Guozheng is currently responsible for the overall management of SC.
Working
Experience(s):
From 2001 to present Working in SC as legal representative, chairman and general manager
SC is mainly
engaged in manufacturing and selling drying equipment.
SC’s products mainly include: MC310
Chips Conveying System, PET Drying System, PA6/PA66 Drying System, PET/PA SSP
System, Air/Nitrogen Dehumidifier(high pressure/normal), and Non-woven
Equipment, etc.
SC sources its
materials 20% from overseas market, mainly America, and 80% from domestic market,
mainly Henan province. SC sells 90% in domestic market, mainly Jiangsu and
Henan province, and 10% to overseas market, mainly Italy, Indonesia, and
Pakistan.
The buying terms of SC include T/T, L/C, Check and Credit of
30-60 days. The payment terms of SC include T/T, L/C, Check and Credit of 30-60
days.
Note: SC’s
management declined to release its major clients and suppliers.
SC
is not known to have any subsidiary at present.
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 refused to
release any information of its suppliers and the trade reference was not
available.
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.
Bank of China
AC#：N/A
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2011 |
As of Aug. 31, 2012 |
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Cash & bank |
10,120 |
7,600 |
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Inventory |
4,050 |
5,760 |
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Accounts
receivable |
660 |
590 |
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Advances to
suppliers |
28,970 |
11,600 |
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Other
receivables |
1,170 |
1,260 |
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Other current
assets |
2,050 |
40 |
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------------------ |
------------------ |
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Current assets |
47,020 |
26,850 |
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Fixed assets net
value |
1,410 |
1,170 |
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Long term
investment |
0 |
0 |
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Projects under
construction |
0 |
0 |
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Intangible and
other assets |
10 |
0 |
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------------------ |
------------------ |
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Total assets |
48,440 |
28,020 |
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=========== |
=========== |
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Short loan |
0 |
0 |
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Accounts payable |
3,100 |
3,100 |
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Bills payable |
0 |
0 |
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Advances from
clients |
40,990 |
16,770 |
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Salaries and
welfare payable |
340 |
350 |
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Taxes payable |
460 |
290 |
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Other Accounts
payable |
-90 |
-90 |
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Other current
liabilities |
40 |
2,760 |
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------------------ |
------------------ |
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Current
liabilities |
44,840 |
23,180 |
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Long term
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
44,840 |
23,180 |
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Equities |
3,600 |
4,840 |
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------------------ |
------------------ |
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Total
liabilities & equities |
48,440 |
28,020 |
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Income Statement
Unit: CNY’000
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Jan. 1 to Aug. 31, 2012 |
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Turnover |
81,220 |
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Cost of goods sold |
70,650 |
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Sales expense |
6,240 |
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Management expense |
3,110 |
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Finance expense |
0 |
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Profit before tax |
1,570 |
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Less: profit tax |
130 |
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Profits |
1,440 |
Important
Ratios
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As
of Dec. 31, 2011 |
As of Aug. 31, 2012 |
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*Current ratio |
1.05 |
1.16 |
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*Quick ratio |
0.96 |
0.91 |
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*Liabilities
to assets |
0.93 |
0.83 |
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*Net profit
margin (%) |
/ |
1.77 |
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*Return on
total assets (%) |
/ |
5.14 |
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*Inventory
/Turnover ×365 |
/ |
/ |
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*Accounts
receivable/Turnover ×365 |
/ |
/ |
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*Turnover/Total
assets |
/ |
2.90 |
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* Cost of
goods sold/Turnover |
/ |
0.87 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in its line.
l
SC’s net profit margin is average.
l
SC’s return on total assets is fairly good.
l
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears small.
l
There is no short-term loan of SC in 2011.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is high in 2011 and fairly
high as of Aug. 31, 2012.
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.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.20 |
|
UK Pound |
1 |
Rs.87.79 |
|
Euro |
1 |
Rs.70.43 |
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 |
|
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 |
|
<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.