MIRA
INFORM REPORT
|
Report Date : |
13.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
NINGBO TECOMEC MANUFACTURING CO., LTD. |
|
|
|
|
Registered Office : |
No. 158 Changxing Road, Area C, Jiangbei Industrial Zone, Ningbo, Zhejiang Province 315033 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
08.07.2005 |
|
|
|
|
Com. Reg. No.: |
330200400022498 |
|
|
|
|
Legal Form : |
Wholly Foreign-Owned Enterprise |
|
|
|
|
Line of Business : |
manufacturing and selling high pressure cleaning equipment and
accessories, and related garden equipment |
|
|
|
|
No. of Employees : |
150 |
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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
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 & address
NINGBO TECOMEC
MANUFACTURING CO., LTD.
NO. 158 CHANGXING ROAD, AREA C, JIANGBEI
INDUSTRIAL ZONE, NINGBO, ZHEJIANG PROVINCE 315033 PR CHINA
TEL: 86 (0)
574-83092738/83092798/87579408
FAX: 86 (0)
574-87579486/87579816
EXECUTIVE SUMMARY
INCORPORATION DATE : JULY 8, 2005
REGISTRATION NO. : 330200400022498
REGISTERED LEGAL
FORM : WHOLLY FOREIGN-OWNED ENTERPRISE
CHIEF EXECUTIVE : MR. DANIELE BIANCHINI (CHAIRMAN)
STAFF STRENGTH : 150
REGISTERED CAPITAL : USD 1,100,000
BUSINESS LINE :
MANUFACTURING AND TRADING
TURNOVER :
CNY 92,610,000 (AS OF DEC. 31,
2012)
EQUITIES :
CNY 11,060,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.20= 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 Ren Min Bi
SC was registered as a wholly foreign-owned
enterprise at local Administration for Industry & Commerce (AIC -
The official body of issuing and renewing business license) on July 8, 2005.
Company Status: Wholly foreign-owned enterprise This
form of business in PR China is defined as a legal person. It is a limited
co. established within the territories of PR China with capital provided
totally by the foreign investors. More than one foreign investor may
jointly invest in a wholly foreign-owned enterprise. The investing
party/parties solely exercise management, reap profit and bear risks and
liabilities by themselves. This form of companies usually have a limited
duration is extendible upon approval of Examination and Approval
Authorities.
SC’s registered business scope includes designing and manufacturing high
pressure cleaning equipment and accessories, high precision mechanical
components, car into pieces, chain saw parts, bush cutter spare parts, nylon
line, landscape gardening tools accessories, agricultural spray equipment spare
parts, and providing after-sales service of the above products.
SC is mainly
engaged in manufacturing and selling high pressure cleaning equipment and accessories,
and related garden equipment.
Mr. Daniele
Bianchini has been the legal representative and chairman of SC since April of
2013.
SC is known
to have approx. 150 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Ningbo. The detailed
information of the premise is unspecified.
SC is not known to host website of its own at present.
Changes
of its registered information are as follows:
|
Date
of change |
Item |
Before
the change |
After the change |
|
2013-4 |
Legal representative |
Giacomo Ferretti |
Present one |
Tax Registration Certificate No.: 330205775643204.
Organization Code: 775643204.
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name
%
of Shareholding
Tecomec S.R. L. (Italy)
100
Website: http://www.tecomec.com/
Email: salesdept@tecomec.com
Add: Strada Della Mirandola 11, 42124 Reggio
Emilia (RE)
Tel: +39 0522 959001
Fax: +39 0522 953033
Legal
representative and Chairman:
Mr. Daniele Bianchini is currently responsible for the overall management of SC.
Working
Experience(s):
From April of 2013 to present Working in SC as legal representative and chairman
SC is mainly
engaged in manufacturing and selling high pressure cleaning equipment and
accessories, and related garden equipment.
SC’s products
mainly include high pressure cleaning equipment and accessories, high precision
mechanical components, chain saw parts, bush cutter spare parts, landscape
gardening tools, etc.
SC sources its materials
80% from domestic market and 20% from overseas market. SC sells 10% of its
products in domestic market, and 90% to overseas market, mainly Europe, America
and 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.
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 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.
Bank of China Ningbo Jiangbei Sub-branch
AC#:
N/A
Add.: No. 725
Renmin Road, Jiangbei District, Ningbo, Zhejiang Province
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
Cash & bank |
2,440 |
1,830 |
|
Inventory |
14,060 |
15,850 |
|
Accounts
receivable |
8,780 |
10,210 |
|
Advances to
suppliers |
990 |
430 |
|
Other
receivables |
2,010 |
3,460 |
|
Other current
assets |
0 |
10 |
|
|
------------------ |
------------------ |
|
Current assets |
28,280 |
31,790 |
|
Fixed assets net
value |
4,500 |
5,100 |
|
Long term
investment |
0 |
380 |
|
Projects under
construction |
0 |
0 |
|
Intangible and
other assets |
420 |
410 |
|
|
------------------ |
------------------ |
|
Total assets |
33,200 |
37,680 |
|
|
=========== |
=========== |
|
Short loan |
0 |
0 |
|
Accounts payable |
20,540 |
24,230 |
|
Advances from
clients |
970 |
2,120 |
|
Salaries and
welfare payable |
70 |
800 |
|
Taxes payable |
-620 |
-770 |
|
Other Accounts
payable |
1,390 |
240 |
|
Other current
liabilities |
10 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
22,360 |
26,620 |
|
Long term
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
22,360 |
26,620 |
|
Equities |
10,840 |
11,060 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
33,200 |
37,680 |
|
|
=========== |
=========== |
Income Statement
Unit: CNY’000
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
Turnover |
82,250 |
92,610 |
|
Cost of goods sold |
74,990 |
85,150 |
|
Taxes and additional of main operation |
260 |
80 |
|
Sales expense |
790 |
790 |
|
Management expense |
5,800 |
5,840 |
|
Finance expense |
510 |
420 |
|
Other income |
500 |
120 |
|
Profit before tax |
400 |
450 |
|
Less: profit tax |
60 |
230 |
|
Profits |
340 |
220 |
Important
Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
1.26 |
1.19 |
|
*Quick ratio |
0.64 |
0.60 |
|
*Liabilities
to assets |
0.67 |
0.71 |
|
*Net profit
margin (%) |
0.41 |
0.24 |
|
*Return on
total assets (%) |
1.02 |
0.58 |
|
*Inventory
/Turnover ×365 |
63 days |
63 days |
|
*Accounts receivable/Turnover
×365 |
39 days |
41 days |
|
*Turnover/Total
assets |
2.48 |
2.46 |
|
* Cost of
goods sold/Turnover |
0.91 |
0.92 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in its line, and
it increased in 2012.
l
SC’s net profit margin is average in both years.
l
SC’s return on total assets is average in both
years.
l
SC’s cost of goods sold is fairly high, comparing
with its turnover in both years.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level in both years.
l
SC’s quick ratio is maintained in a fair level in
both years.
l
The inventory of SC appears fairly large in both
years.
l
The accounts receivable of SC appears average in
both years.
l
There is no short-term loan of SC in both years.
l
SC’s turnover is in an average level, comparing
with the size of its total assets in both years.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average in both years.
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 industry with fairly stable
financial conditions. The large amount of inventory could
be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.44 |
|
UK Pound |
1 |
Rs.83.78 |
|
Euro |
1 |
Rs.71.33 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.