MIRA
INFORM REPORT
|
Report Date : |
12.09.2012 |
IDENTIFICATION DETAILS
|
Name : |
Ningbo
Jinlun Import & Export Co., Ltd. |
|
|
|
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Registered Office : |
Jinlun Building, Zonghan Avenue, Cixi, Ningbo, Zhejiang
Province, 315301 PR |
|
|
|
|
Country : |
China |
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|
|
|
Financials (as on) : |
31.12.2010 |
|
|
|
|
Date of Incorporation : |
01.03.2001 |
|
|
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Com. Reg. No.: |
330282000136445 |
|
|
|
|
Legal Form : |
Limited Liabilities Company |
|
|
|
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Line of Business : |
Engaged in selling different sorts of industrial fabrics |
|
|
|
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No. of Employees : |
25 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
Payment Behaviour : |
No complaints |
|
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) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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
Ningbo Jinlun Import & Export
Co., Ltd.
jinlun building, zonghan avenue, cixi,
ningbo, zhejiang PROVINCE, 315301
PR CHINA
TEL: 86 (0) 574-63218970/63218968 FAX: 86 (0) 574-63201558
EXECUTIVE SUMMARY
INCORPORATION DATE : march 1, 2001
REGISTRATION NO. : 330282000136445
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH : 25
REGISTERED CAPITAL :
CNY 30,000,000
BUSINESS LINE : TRADING
TURNOVER : CNY 820,212,000 (AS OF DEC. 31, 2010)
EQUITIES : CNY 37,271,000 (AS OF DEC. 31, 2010)
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY
6.35 = USD
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 limited
liabilities company at local Administration for Industry & Commerce (AIC - The
official body of issuing and renewing business license) on March 1, 2001.
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’s
registered business scope includes importing and exporting goods and technologies,
but excluding the goods or technologies prohibited or limited by the country.
SC is
mainly engaged in selling different sorts of industrial fabrics.
Mr. Lu
Hanzhen has been legal representative, chairman and general manager of SC since
2001.
SC is
known to have approx. 25 employees at present.
SC is currently operating at the above stated address, and this
address houses its operating office in the commercial zone of Ningbo. Our
checks reveal that SC rents the total premise about 500 square meters.
http://www.kingring.com/ It is
the website of its parent company - Jinlun Group Corp. The design is
professional and the content is well organized. At present it is in both
Chinese and English versions.
Changes
of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
|
Shareholders |
Ningbo Xingxing Industrial Co., Ltd. 10%, Jinlun Group Corp. 90% |
Cixi Xinghuo Chemical Fiber Co., Ltd. 10% Jinlun Group Corp. 90% |
|
|
Registration No. |
3302821002527 |
Present one |
|
Shareholders |
Jinlun Group Corp. 90% Cixi Xinghuo Chemical Fiber Co., Ltd. 10% |
Present ones |
Tax Registration Certificate
No.: 330282726404899
Organization Code:
72640489-9
MAIN SHAREHOLDERS:
Name %
of Shareholding
Jinlun Group Corp. 90
Ningbo Nylon Co., Ltd. 10
Jinlun Group Corp.
==============
Jinlun Group Corp, former Cixi
Nylon Co., Ltd., is a credible manufacturer of Nylon 6 Tyre Cord Fabric. Jinlun
has been developing very rapidly from a small factory to large-scale enterprise
with the combination of Chemical Fire, thermal power, real estate,
international trade and machinery and services, etc. (according to its website)
Tel: 86 0574-63218000
Fax: 86 0574-63205943
Email: group@kingring.com
Registered no.: 330200000050540
Incorporation Date: Dec. 19,
1986
Ningbo Nylon Co., Ltd.
==================
Address: Jinlun Building, Cixi
City, Zhejiang Province
Tel: 86 0574-63205781
Fax: 86 0574-63205688
Registered no.: 330200000050767
Incorporation Date: Feb. 24,
1994
l
Legal representative,
chairman and general manager:
Mr. Lu
Hanzhen, ID#: 330222195504121112, born in 1955, with university
education. He is currently responsible for the overall management of SC.
Working Experience(s):
1984-1986 Worked in Cixi Plastic
Modification Factory as factory director.
1986-1992 Worked in Cixi Nylon
Factory as factory director.
From 1992 to present Working in Jinlun Group Corp. as
chairman.
From 2001 to present
Working in SC as legal representative, chairman and general manager; Also
working in Jinlun Group Corp., Ningbo Nylon Co., Ltd., Ningbo Jinlun Sunshine
Reality Co., Ltd., Cixi Wind Power Co., Ltd., Cixi Jinlun Dahe Reality Co.,
Ltd. (Literal Translation), Cixi Jinlun Dongrui Reality Co., Ltd. (Literal
Translation), Cixi Jinlun Energy Development Co., Ltd. and etc as legal representative.
l
Supervisor:
Mr. Xu Zhuxiang ID#: 330222194610077114
SC is mainly
engaged in selling different sorts of industrial fabrics.
SC’s
products mainly include tyre fabrics, plastic products, hardware, etc.
SC sources its materials 70%
from domestic market, and 30% from overseas market, mainly U.S.A. and Europe.
SC sells 60% of its products in domestic market, and 40% to overseas market,
mainly Southeast Asian market.
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.
Note:
SC’s management declined to release its major clients and suppliers.
Cixi Wind Power Co., Ltd.
Cixi Jinlun Dahe Reality Co., Ltd. (Literal Translation)
Cixi Jinlun Dongrui Reality Co., Ltd. (Literal Translation)
Cixi Jinlun Energy Development Co., Ltd.
Etc.
SC is
known to invest in the following company:
Ningbo Jinlun Sunshine Reality Co., Ltd.
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.
Cixi Agricultural Bank of China
AC#: 39502001010016231
CITIC Industrial Bank Cixi Sub-branch
AC#: 7336210182100006412
Industrial and Commercial Bank of China Cixi Sub-branch
AC#: 3901300009000069506
AC#: 3901300009814100406
Bank of China Cixi Sub-branch
AC#: 17060948808093014
AC#:
00948808093001
China
Construction Bank Cixi Sub-branch
AC#：3313319973352213000488
Fujian Industrial Bank Ningbo
Branch
AC#:
386010130100000941
Shenzhen
Development Bank Cixi Sub-branch
AC#:
11000256932801
Ningbo
City Commercial Bank East Sub-branch
AC#:
850010320108003282
Relationship:
Normal.
Balance
Sheet
Unit:
CNY’000
|
|
as
of Dec. 31, 2009 |
as
of Dec. 31, 2010 |
|
Cash
& bank |
80,027 |
137,242 |
|
19,743 |
71,944 |
|
|
115,791 |
94,447 |
|
|
Notes
receivable |
0 |
0 |
|
Other
receivables |
119,106 |
230,182 |
|
Other
current assets |
0 |
0 |
|
|
------------------ |
----------------- |
|
334,667 |
533,815 |
|
|
Fixed
assets net value |
43 |
37 |
|
Projects
under construction |
0 |
0 |
|
Long-term
investments |
7,280 |
7,280 |
|
Intangible
and other assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
assets |
341,990 |
541,132 |
|
|
============= |
============= |
|
Short
loans |
133,576 |
178,743 |
|
Accounts
payable |
117,819 |
129,279 |
|
Other
Accounts payable |
118 |
80 |
|
Notes
payable |
57,000 |
197,000 |
|
Taxes
unpaid |
-2,273 |
-1,364 |
|
Accrued
payroll |
38 |
102 |
|
Other
payable |
24 |
21 |
|
Other
current liabilities |
0 |
0 |
|
|
----------------- |
----------------- |
|
306,302 |
503,861 |
|
|
Long
term liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
306,302 |
503,861 |
|
Shareholders
equities |
35,688 |
37,271 |
|
|
------------------ |
------------------ |
|
341,990 |
541,132 |
|
|
|
============= |
============= |
Income
Statement
Unit:
CNY’000
|
|
as
of Dec. 31, 2009 |
as
of Dec. 31, 2010 |
|
729,509 |
820,212 |
|
|
686,910 |
769,027 |
|
|
Taxes and additional of main
operation |
0 |
0 |
|
Sales expense |
22,255 |
24,748 |
|
Management expense |
4,654 |
2,088 |
|
Finance expense |
9,663 |
21,374 |
|
Non-operating
income |
0 |
0 |
|
Non-operating
expense |
730 |
826 |
|
Operation
Profit |
5,297 |
2,149 |
|
Less:
profit tax |
0 |
537 |
|
5,297 |
1,612 |
Important
Ratios
=============
|
|
as
of Dec. 31, 2009 |
as
of Dec. 31, 2010 |
|
*Current
ratio |
1.09 |
1.06 |
|
*Quick
ratio |
1.03 |
0.92 |
|
*Liabilities
to assets |
0.90 |
0.93 |
|
*Net
profit margin (%) |
0.73 |
0.20 |
|
*Return
on total assets (%) |
1.55 |
0.30 |
|
*Inventory
/Turnover ×365 |
10
days |
33
days |
|
*Accounts
receivable/Turnover ×365 |
58
days |
43
days |
|
*Turnover/Total
assets |
2.13 |
1.52 |
|
*
Cost of goods sold/Turnover |
0.94 |
0.94 |
PROFITABILITY: AVERAGE
l
The turnover of SC appears fairly good
in its line in both years.
l
SC’s net profit margin of SC is maintained
in an average level in both years.
l
SC’s return on total assets of SC is
maintained in an average level in both years.
l
SC’s cost of goods sold is high,
comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained
in a fair level in both years.
l
SC’s quick ratio is maintained in a
normal level in both years.
l
The inventory of SC appears average in
both years.
l
The accounts receivable of SC appears
average.
l
SC’s short-term loan of SC appears too
large in both years.
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.
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 short loan could be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.52 |
|
|
1 |
Rs.88.84 |
|
Euro |
1 |
Rs.70.85 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>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 |
|
-- |
NB |
New Business |
-- |
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.