MIRA INFORM REPORT
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Report Date : |
18.10.2012 |
IDENTIFICATION DETAILS
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Name : |
BEIJING CHONGLEE MACHINERY ENGINEERING CO., LTD. |
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Registered Office : |
No. 3, Xingguang, No. 4 Street, Opto-Mechatronics
Industrial Park, Zhongguancun Science And Technology Park, Tongzhou District,
Beijing 101111 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
05.01.2005 |
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Com. Reg. No.: |
110000007892165 |
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Legal Form : |
One-Person Limited Liability Company |
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LINE OF BUSINESS : |
MANUFACTURING
AND SELLING COMPLETE CHEMICAL FIBER PRODUCTION
EQUIPMENT. |
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No. of Employees : |
862 |
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 (31.03.2011) |
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
BEIJING CHONGLEE MACHINERY ENGINEERING CO., LTD.
NO. 3, XINGGUANG, NO. 4 STREET, OPTO-MECHATRONICS INDUSTRIAL PARK, ZHONGGUANCUN SCIENCE AND TECHNOLOGY PARK,
TONGZHOU DISTRICT, BEIJING 101111 PR CHINA
TEL: 86 (0) 10-65987921/65031572
FAX: 86 (0) 10-65987455/65922560
EXECUTIVE SUMMARY
Date of Registration : JANUARY 5, 2005
REGISTRATION NO. : 110000007892165
LEGAL FORM : ONE-PERSON LIMITED
LIABILITY COMPANY
REGISTERED CAPITAL : cny 150,000,000
staff :
862
BUSINESS CATEGORY : manufacturing
Revenue :
CNY 808,031,000 (AS OF DEC. 31, 2011)
EQUITIES :
CNY 161,632,000 (AS OF DEC. 31, 2011)
WEBSITE : www.ctamp.com.cn
E-MAIL :
cmec@vip.sina.com
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.27 = 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 one-person limited liability
company of PRC with State Administration of Industry & Commerce
(SAIC) under registration No.: 110000007892165 on January 5, 2005.
SC’s Organization Code Certificate No.:
77042757-X
SC’s registered capital: cny 150,000,000
SC’s paid-in capital: cny 150,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
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Legal Representative |
Zhou
Quanzhong |
Tong Wenqi |
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Registered Capital |
CNY
20,000,000 |
CNY 110,000,000 |
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%Shareholding |
Beijing
Chonglee Machinery & Chemical Fiber Engineering Co., Ltd. 80% Langfang Development Zone Dazhongli Chemical
Fiber Technology Equipment Co., Ltd. 20% |
Beijing
Chonglee Machinery & Chemical Fiber Engineering Co., Ltd. 96.36% Langfang Development Zone Dazhongli Chemical
Fiber Technology Equipment Co., Ltd. 3.64% |
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Shareholder (s) |
Beijing
Chonglee Machinery & Chemical Fiber Engineering Co., Ltd. 96.36% Langfang Development Zone Dazhongli Chemical
Fiber Technology Equipment Co., Ltd. 3.64% |
Beijing
Chonglee Machinery & Chemical Fiber Engineering Co., Ltd. 100% |
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Legal Form |
Limited Liability Company |
One-Person Limited Liability Company |
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Shareholder (s) |
Beijing
Chonglee Machinery & Chemical Fiber Engineering Co., Ltd. 100% |
China Textile Academy 100% |
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Registered Capital |
CNY 110,000,000 |
cny 150,000,000 |
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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China Textile Academy |
100 |
SC’s Chief Executives:-
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Position |
Name |
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Legal Representative, Chairman, and
General Manager |
Tong Wenqi |
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Director |
Li Wenfang |
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Shen Wei |
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Liu Fu’an |
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Wang Youde |
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Wang Liru |
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Supervisor |
Zhao Guangsheng |
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Zhang Lu |
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Shi Hongxia |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
China Textile
Academy 100
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China Textile Academy (CTA) was founded in
1956, originally affiliated to the Ministry of Textile Industry; in 1999, it
was transformed to the largest comprehensive science and technology R & D
institute in China’s textile industry, operating directly under the leadership
of the central government.
Address: No.3 Yanjingli Middle Street,
Chaoyang District, Beijing, China
Tel: 86 (0) 10-65987114
Fax: 86 (0) 10-65010837
Web: www.cta.com.cn
E-mail: cta@public3.bta.net.cn
MANAGEMENT
Tong Wenqi , Legal Representative, Chairman and General
Manager
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Ø
Gender: M
Ø
Age: 52
Ø
ID# 410105600219383
Ø Qualification:
University
Ø Working experience
(s):
From 2002 to 2005, worked in Zhengzhou
Textile Machinery Co., Ltd
From 2005 to present, working in SC as
legal representative, chairman and general manager
Director
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Li Wenfang ID#: 110105195311040487
Shen Wei ID#: 320525196302140559
Liu Fu’an ID#: 110105195512160071
Wang Youde ID#: 110105481223005
Wang Liru ID#: 110105510225002
Supervisor
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Zhao Guangsheng
Zhang Lu
Shi Hongxia
BUSINESS OPERATION
SC’s registered
business scope includes manufacturing equipment
for chemical fiber industrial production; general freight; selling equipment for chemical fiber
industrial production, mechanical
electrical equipment, chemical products(excluding dangerous chemicals);
professional contracting; technology developing, transferring, consulting, and
servicing, engineering technology training; import and export of goods and
technologies.
SC is mainly
engaged in manufacturing and selling complete chemical fiber
production equipment.
SC’s products
mainly include: POY high speed spinning machining series, FDY spinning and
drawing machine series, industrial yarn spinning machine series, differential
yarn spinning machine series, high speed winders.
SC sources its materials 100% from domestic market. SC sells 70% of its products in domestic market, and 30% to overseas market.
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.
Staff & Office:
--------------------------
SC is known
to have approx. 862 staff at
present.
SC owns an area as
its operating office and factory, but the detailed information is unknown.
RELATED COMPANY
SC is known to have 3
subsidiaries and a branch at present:
n
Beijing Chonglee Machinery Electric Co., Ltd.
n
Beijing Chonglee Machinery Parts Co., Ltd.
n
Beijing Chonglee Machinery Spinneret Co., Ltd.
n
Beijing Chonglee Machinery Engineering Co., Ltd. Xiaoshan Branch
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:
Industrial & Commercial Bank of China Balizhuang Office
AC#: 065492-64
Note: SC’s
management declined to release whether it has an account in HSBC Bank China Company Ltd.
FINANCIALS
Financial Summary
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Unit: CNY’000 |
As
of Dec. 31, 2011 |
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Long term investment |
8,486 |
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Total assets |
1,801,041 |
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Total
liabilities |
1,639,409 |
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Equities |
161,632 |
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Revenue |
808,031 |
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Profit before
tax |
8,058 |
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Less: profit tax |
1,813 |
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Profits |
6,245 |
Note: The detailed financials for Y2011 are not available in SAIC.
Important Ratios
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As
of Dec. 31, 2011 |
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*Liabilities
to assets |
0.91 |
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*Net profit
margin (%) |
0.77 |
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*Return on total
assets (%) |
0.35 |
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*
Revenue/Total assets |
0.45 |
FINANCIAL COMMENTS
PROFITABILITY:
AVEARGE
l The revenue of SC
appears fairly good in its line.
l SC’s net profit
margin is average.
l SC’s return on
total assets is average.
LIQUIDITY: FAIR
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 fairly high.
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.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.52.75 |
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|
1 |
Rs.85.07 |
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Euro |
1 |
Rs.69.04 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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 |
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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.