MIRA INFORM REPORT
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Report Date : |
16.04.2013 |
IDENTIFICATION DETAILS
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Name : |
KUNSHAN TRACK CO., LTD. |
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Registered Office : |
No. 1357 Changjiang North Road, Zhoushi Town, Kunshan, Jiangsu Province 215313 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
08.06.2007 |
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Com. Reg. No.: |
320583000168969 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
manufacturing and selling engineering machinery & equipment chassis
parts, agricultural machinery & equipment & chassis parts, tractor
equipment and chassis parts |
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No. of Employees : |
101 |
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 – June 30th, 2012
|
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
KUNSHAN
TRACK CO., LTD.
no. 1357 changjiang north road, zhoushi town
kunshan, jiangsu PROVINCE 215313 PR CHINA
TEL: 86 (0) 512-55105968/55105966
FAX: 86 (0) 512-55105955
EXECUTIVE SUMMARY
Date of Registration : june 8, 2007
REGISTRATION NO. : 320583000168969
LEGAL FORM : Chinese-foreign equity joint venture
enterprise
CHIEF EXECUTIVE : liu yueying (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 4,081,633
staff : 101
BUSINESS CATEGORY : MANUFACTURING & TRADING
Revenue : CNY 131,870,000 (AS OF DEC. 31, 2011)
EQUITIES :
CNY 30,150,000 (AS OF
DEC. 31, 2011)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT : AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : FAIRly
steady
GENERAL REPUTATION : average
EXCHANGE RATE : CNY 6.21 = 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
LEGAL STATUS & HISTORY
SC was established as a Chinese-foreign equity joint venture enterprise
of PRC with State Administration of Industry & Commerce (SAIC) under
registration No.: 320583000168969
on June 8, 2007.
SC’s Organization Code Certificate No.:
66325048-1
SC’s Tax No.: 320583663250481
SC’s registered capital: CNY 4,081,633
SC’s paid-in capital: CNY 4,081,633
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 |
|
Comindus S.A (Luxembourg) |
51 |
|
Liu Yansheng |
14.7 |
|
Liu Yueying |
19.6 |
|
Yang Honggen |
14.7 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Liu Yueying |
|
Director |
Liu Yansheng |
|
Ji Hong |
|
|
Zhu Yin |
|
|
Qu Wei |
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|
Gu Huahua |
|
|
Yang Honggen |
|
|
Supervisor |
Luo Helin |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name
%
of Shareholding
Comindus S.A (Luxembourg) 51
Liu Yansheng 14.7
Liu Yueying 19.6
Yang Honggen 14.7
MANAGEMENT
Liu Yueying, Legal
Representative, Chairman and General Manager
---------------------------------------------------------------------------------------------------
Ø
Gender: F
Ø
ID# 352627194208091929
Ø
Age: 71
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal representative, chairman and
general manager
Director
-----------
Liu Yansheng ID# 340122711129271
Ji Hong ID# 370105196907063746
Zhu Yin ID# 310104198111092420
Qu Wei ID#
310221196902070415
Gu Huahua ID# 310230198308041481
Yang Honggen ID# 320521197101286710
Supervisor
--------------
Luo Helin ID# 352627197012181918
BUSINESS OPERATION
SC’s
registered business scope includes manufacturing and selling engineering
machinery & equipment chassis parts, agricultural machinery & equipment
& chassis parts, tractor equipment and chassis parts; importing and
exporting commodities and technology.
SC is mainly
engaged in manufacturing and selling engineering machinery & equipment
chassis parts, agricultural machinery & equipment & chassis parts,
tractor equipment and chassis parts.
SC’s
products mainly include: engineering machinery & equipment chassis
parts, agricultural machinery & equipment & chassis parts, tractor
equipment and chassis parts.
SC sources its
materials 99% from domestic market, and 1% from overseas market, mainly
Germany. SC sells 11% in domestic market and 89% to overseas market, mainly
Italy, U.S.A., Arab, Indonesia, Australia, Singapore, etc.
The
import & export status of SC in 2011 is as follows,
|
Country |
Amount
of Exports (USD) |
Amount of Imports (USD) |
|
Italy |
49,960,000 |
-- |
|
U.S.A. |
42,470,000 |
-- |
|
Arab |
12,560,000 |
-- |
|
Indonesia |
7,250,000 |
-- |
|
Australia |
5,840,000 |
-- |
|
Singapore |
1,330,000 |
-- |
|
Germany |
-- |
490,000 |
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.
Staff & Office:
--------------------------
SC is
known to have approx. 101 staff
at present.
SC rents an area
as its operating office and factory, but the detailed information is unknown.
RELATED COMPANY
SC is not known to have the 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
The bank
information of SC is not filed in local SAIC.
FINANCIALS
Financial Summary
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
Long term investment |
0 |
0 |
|
Total assets |
26,887 |
40,680 |
|
|
------------- |
------------- |
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Total
liabilities |
8,420 |
10,530 |
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Equities |
18,467 |
30,150 |
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|
------------- |
------------- |
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Revenue |
94,907 |
131,870 |
|
Profit before
tax |
10,354 |
13,970 |
|
Less: profit tax |
1,384 |
1,830 |
|
Profits |
8,970 |
12,140 |
Note: The detailed financials for Y2010 & Y2011 are not available in
SAIC.
Important Ratios
=============
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
*Liabilities
to assets |
0.31 |
0.26 |
|
*Net profit
margin (%) |
9.45 |
9.21 |
|
*Return on
total assets (%) |
33.36 |
29.84 |
|
*Revenue/Total
assets |
3.53 |
3.24 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l The revenue of SC
appears average, and it was rising in 2011.
l SC’s net profit
margin is fairly good in both years.
l SC’s return on
total assets is good in both years.
LIQUIDITY:
FAIRLY GOOD
l
SC’s revenue is in a
fairly good level, comparing with the size of its total assets.
LEVERAGE:
AVERAGE
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Good.
CONCLUSIONS
SC is considered small-sized in its line with fairly good
financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.63 |
|
UK Pound |
1 |
Rs.83.70 |
|
Euro |
1 |
Rs.71.42 |
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 |
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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 |
|
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 |
---- |
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.