MIRA INFORM REPORT
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Report Date : |
18.10.2012 |
IDENTIFICATION DETAILS
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Name : |
NINGBO JINTIAN NEW MATERIAL CO., LTD. |
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Registered Office : |
No. 636 Binhai Silu, Cixi Economic Development Zone Ningbo, Zhejiang Province 315336 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
01.11.2007 |
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Com. Reg. No.: |
330218000001197 |
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Legal Form : |
One-Person Limited Liabilities Company |
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line of business
: |
Manufacturing And Selling Enamelled Wire. |
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No. of Employees : |
759 |
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 – March 31st, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
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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
NINGBO JINTIAN NEW MATERIAL CO., LTD.
NO. 636 BINHAI SILU, CIXI ECONOMIC DEVELOPMENT ZONE
NINGBO, ZHEJIANG PROVINCE 315336 PR CHINA
TEL: 86 (0) 574-87597860
FAX: 86 (0) 574-87574479
EXECUTIVE SUMMARY
Date of Registration : november 1, 2007
REGISTRATION NO. : 330218000001197
LEGAL FORM : one-person Limited liabilities company
CHIEF EXECUTIVE :
zheng dundun (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : cny 72,000,000
staff :
759
BUSINESS CATEGORY : manufacturing
Revenue :
CNY 2,147,771,000 (AS OF DEC. 31, 2011)
EQUITIES :
CNY 174,441,000 (AS OF DEC. 31, 2011)
WEBSITE : www.jtemcn.com
E-MAIL :
jtem@jtemcn.com
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.25 = 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 one-person limited liabilities company of PRC with
State Administration of Industry & Commerce (SAIC) under registration No.:
330218000001197 on November 1, 2007.
SC’s Organization Code Certificate No.:
66845901-4
SC’s Tax No.: 330282668459014
SC’s registered capital: CNY 72,000,000
SC’s paid-in capital: CNY 72,000,000
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:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Ningbo Jintian Copper (Group) Co., Ltd. |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and General Manager |
Zheng Dundun |
|
Supervisor |
Wang Tingnan |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Ningbo Jintian Copper (Group) Co., Ltd. 100
-----------------------------------------------
Registration No.: 330200000017076
Date of Registration: June 20, 1992
Legal Form: Shares Limited Company
Registered Capital: CNY 1,214,969,000
Legal Representative: Lou Guoqiang
Tel: 86-574-87191330
Fax: 86-574-87190198
Code: 315000
URL: www.china-copper.com
E-mail: import@jtgroup.com.cn
& export@jtgroup.com.cn
Jintian group mainly engages in copper processing and smelting,
high-tech materials, processing trade and real estate etc. Her main products
include copper cathodes, oxygen-free copper line and all grade of copper wire,
brass bar, brass plate, copper tube, enameled copper wire, valve, water meter,
magnetic materials etc. Jintian has set up a national-level enterprise
technical center and a Post-Doctoral Research Center obtaining ISO9001:2000
quality system certification.
MANAGEMENT
Zheng Dundun, Legal Representative, Chairman and General
Manager
--------------------------------------------------------------------------------------------------------
Gender: M
Age: 36
ID# 330205197610144214
Qualification: University
Working experience (s):
At present, working in SC as legal representative, chairman and general
manager
Wang Tingnan,
Supervisor
----------------------------------------------
Gender: F
Age: 43
ID# 330205196901053342
Qualification: University
BUSINESS OPERATION
SC’s registered business scope includes research and development
of new type of building materials and nanometer material; manufacturing,
processing, and selling electronic enamelled wire, wire, cable, and electrical
equipment; importing and exporting commodities and technology.
SC is mainly engaged in manufacturing and selling enamelled wire.
SC’s products mainly include:
Solderable Polyurethane Series
Class H, Polyester-Imide Series
Class C, Double Coating Series
Polyester Series
Nylon Overcoating Series
SC sources its materials 100% from domestic market. SC sells 70% of its
products in domestic market, and 30% to overseas market, mainly Southeast Asia,
etc.
The buying terms of SC include Check, 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. 759
staff at present.
SC owns an area as its operating office and factory, but the detailed
information is unknown.
RELATED COMPANY
SC is not known to have any subsidiary at present.
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 Ningbo Cixi Branch
Hangzhouwan New Zone Office
AC#: 39543001040002372
FINANCIALS
Balance Sheet
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Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
11,117 |
27,422 |
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Notes receivable |
40,899 |
63,521 |
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Accounts receivable |
141,472 |
106,911 |
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Advances to suppliers |
1,777 |
26,648 |
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Other receivable |
4,237 |
4,043 |
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Inventory |
82,873 |
102,498 |
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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 |
282,375 |
331,043 |
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Long-term investment |
5,400 |
5,400 |
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Fixed assets |
149,102 |
222,467 |
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Construction in progress |
56,787 |
72 |
|
Intangible assets |
79,356 |
77,633 |
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Long-term prepaid expenses |
0 |
0 |
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Deferred income tax assets |
1,394 |
1,490 |
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Other non-current assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
574,414 |
638,105 |
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============= |
============= |
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Short-term loans |
138,000 |
138,000 |
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Notes payable |
0 |
0 |
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Accounts payable |
22,531 |
114,278 |
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Wages payable |
1,666 |
2,865 |
|
Taxes payable |
-5,469 |
-5,258 |
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Interest payable |
393 |
529 |
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Advances from clients |
9,614 |
11,155 |
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Other payable |
45,321 |
407 |
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Other current liabilities |
528 |
528 |
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------------------ |
------------------ |
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Current liabilities |
212,584 |
262,504 |
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Non-current liabilities |
202,688 |
201,160 |
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------------------ |
------------------ |
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Total liabilities |
415,272 |
463,664 |
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Equities |
159,142 |
174,441 |
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------------------ |
------------------ |
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Total liabilities & equities |
574,414 |
638,105 |
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Income Statement
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
Revenue |
1,540,159 |
2,147,771 |
|
Cost of sales |
1,468,212 |
2,078,752 |
|
Sales expense |
9,768 |
14,379 |
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Management expense |
35,286 |
35,008 |
|
Finance expense |
4,895 |
14,890 |
|
Non-business income |
4,598 |
15,021 |
|
Non-business expenditure |
446 |
45 |
|
Profit before tax |
25,723 |
18,757 |
|
Less: profit tax |
2,316 |
3,458 |
|
23,407 |
15,299 |
Important Ratios
=============
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
*Current ratio |
1.33 |
1.26 |
|
*Quick ratio |
0.94 |
0.87 |
|
*Liabilities to assets |
0.72 |
0.73 |
|
*Net profit margin (%) |
1.52 |
0.71 |
|
*Return on total assets (%) |
4.07 |
2.40 |
|
*Inventory / Revenue ×365 |
20 days |
18 days |
|
*Accounts receivable/ Revenue ×365 |
34 days |
19 days |
|
* Revenue/Total assets |
2.68 |
3.37 |
|
* Cost of sales / Revenue |
0.95 |
0.97 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
The revenue of SC appears fairly good, and it was rising in 2011.
SC’s net profit margin is average in both years.
SC’s return on total assets is average in both years.
SC’s cost of sales is fairly high, comparing with its revenue.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a normal level.
The inventory of SC appears average.
The accounts receivable of SC appears average.
The short-term loans of SC appear large.
SC’s revenue is in a fairly good 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 short-term loans may be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.52.75 |
|
UK Pound |
1 |
Rs.85.07 |
|
Euro |
1 |
Rs.69.04 |
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 |
|
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.