MIRA INFORM REPORT
|
Report Date : |
26.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
ZHANGJIAGANG JUNMA STEEL CORD CO., LTD. |
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Registered Office : |
Chenghanghe East Road, Yangshe Town, Zhangjiagang Jiangsu Province
215617 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
22.07.2003 |
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Com. Reg. No.: |
320582000086784 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Subject
is mainly engaged in manufacturing and selling of steel wire,
steel cord, and rope. |
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No. of Employees : |
1,700 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 : |
Slow |
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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, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
|
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 2012 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 under 8% for 2012. An economic slowdown in Europe contributed to
China's, and is expected to further drag Chinese growth in 2013. 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
ZHANGJIAGANG JUNMA
STEEL CORD CO., LTD.
chenghanghe east road, yangshe town, zhangjiagang
JIANGSU PROVINCE 215617 PR CHINA
TEL: 86 (0) 512-58141653
FAX: 86 (0) 512-58298965
EXECUTIVE SUMMARY
Date of Registration : july 22, 2003
REGISTRATION NO. : 320582000086784
LEGAL FORM : Limited Liability Company
REGISTERED CAPITAL :
CNY 600,000,000
staff : 1,700
BUSINESS CATEGORY :
MANUFACTURING
Revenue :
CNY 614,100,000 (AS OF DEC. 31,
2012)
EQUITIES :
CNY 269,460,000 (AS OF DEC. 31, 2012)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : stable
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.17 = 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 limited liabilities company of PRC with State Administration
of Industry & Commerce (SAIC) under registration No.: 320582000086784 on July
22, 2003.
SC’s Organization Code Certificate
No.: 74624261-2
SC’s Tax No.: 320582746242612
SC’s registered capital: CNY 600,000,000
SC’s paid-in capital: CNY 600,000,000
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 |
|
Gu Yunxiang |
1.25 |
|
Jiangsu Runzhong High-tech
Co., Ltd. |
35 |
|
Junma Tyre Cord Company Ltd. |
55 |
|
Zhangjiagang Jinmao Venture
Capital Co., Ltd. |
5 |
|
Zhangjiagang Yuxing Polyester
Products Co., Ltd. |
3.75 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and
Chairman |
Yang
Peixing |
|
General Manager |
Qian
Guoping |
|
Director |
Wang
Ligang |
|
Gu Yunxiang |
|
|
Shen Bin |
|
|
Liu Pinhua |
|
|
Xu Feng |
|
|
Supervisor |
Lian Guizhi |
|
Hou Zhirong |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Gu Yunxiang 1.25
Jiangsu Runzhong High-tech Co.,
Ltd. 35
Junma Tyre Cord Company Ltd. 55
Zhangjiagang Jinmao Venture
Capital Co., Ltd. 5
Zhangjiagang Yuxing Polyester Products
Co., Ltd. 3.75
Junma
Tyre Cord Company Ltd.
===========================
Date of Registration: June 12, 1998
Registration No.: 320000400001617
Legal Form: Shares Limited
Company
Registered Capital: CNY 73,400,000
Address: No. 80 Chenghanghe East Road,
Yangshe Town, Zhangjiagang, Jiangsu Province
Tel: 86 (0) 512-58291688/58299116
Fax: 86 (0) 512-58292308/58140216
MANAGEMENT
Yang
Peixing, Legal
Representative and Chairman
-----------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 51
Ø
ID# 320521196206077611
Ø Qualification:
University
Ø Working experience
(s):
From 2003 to present, working in SC as legal
representative and chairman and general manager, also working in Junma Tyre Cord Company Ltd. as legal
representative, chairman and general manager
Qian Guoping, General Manager
------------------------------------------------------
Ø
Gender: M
Ø
Age: 35
Ø
ID# 320582197812052374
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as general manager
Director
-----------
Wang Ligang ID#
320521196408280079
Gu Yunxiang ID# 320602197404210031
Shen Bin ID# 320582197909192314
Liu Pinhua ID# 320521196602252338
Xu Feng ID# 320521196307297613
Supervisor
-------------
Lian Guizhi ID#
320402197004090826
Hou Zhirong ID#
321102197503241056
BUSINESS OPERATION
SC’s registered business scope includes manufacturing and
selling steel wire, steel cord, and rope, operating and acting as an agent of
importing and exporting various kinds of commodities and technology, excluding
the goods forbidden by the government.
SC is
mainly engaged in manufacturing and selling steel wire, steel cord, and rope.
Brand: JUNMA
SC’s
products mainly include: steel cord, steel cord
for tyre, etc.
SC sources its materials 100% from domestic
market, mainly Jiangsu. SC sells 60% of its products in domestic market, and
40% to overseas market.
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.
*Major Customer:
=============
Junma Tyre Cord Company Ltd.
Staff & Office:
--------------------------
SC is
known to have approx. 1,700 staff
at present.
SC owns an area as
its operating office & factory of approx. 110,000 sq. meters at the heading
address.
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
The bank
information of SC is not filed in SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2012 |
|
51,910 |
|
|
Notes receivable |
0 |
|
Accounts receivable |
256,120 |
|
Advances to
suppliers |
321,310 |
|
Other receivable |
2,150 |
|
Inventory |
258,590 |
|
Non-current
assets within one year |
0 |
|
Other current
assets |
0 |
|
|
------------------ |
|
Current assets |
890,080 |
|
Fixed assets |
768,990 |
|
Construction in
progress |
259,450 |
|
Intangible
assets |
182,760 |
|
Long-term
prepaid expenses |
0 |
|
Deferred income
tax assets |
0 |
|
Other
non-current assets |
0 |
|
|
------------------ |
|
Total assets |
2,101,280 |
|
|
============= |
|
Short-term loans |
393,000 |
|
Notes payable |
210,550 |
|
Accounts payable |
307,400 |
|
Advances from
clients |
0 |
|
Other payable |
470,680 |
|
Current
liabilities due within one year |
60,000 |
|
Other current
liabilities |
-28,810 |
|
|
------------------ |
|
Current
liabilities |
1,412,820 |
|
Non-current
liabilities |
419,000 |
|
|
------------------ |
|
Total
liabilities |
1,831,820 |
|
Equities |
269,460 |
|
|
------------------ |
|
Total
liabilities & equities |
2,101,280 |
|
|
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
|
Revenue |
614,100 |
|
Cost of sales |
660,280 |
|
Sales expense |
27,340 |
|
Management expense |
46,390 |
|
Finance expense |
50,560 |
|
Non-business
income |
1,060 |
|
Non-business expenditure |
1,560 |
|
Profit before
tax |
-166,920 |
|
Less: profit tax |
0 |
|
-166,920 |
Important Ratios
=============
|
|
As
of Dec. 31, 2012 |
|
*Current ratio |
0.63 |
|
*Quick ratio |
0.45 |
|
*Liabilities
to assets |
0.87 |
|
*Net profit
margin (%) |
-27.18 |
|
*Return on
total assets (%) |
-7.94 |
|
*Inventory /
Revenue ×365 |
154 days |
|
*Accounts
receivable/ Revenue ×365 |
153 days |
|
*
Revenue/Total assets |
0.29 |
|
* Cost of
sales / Revenue |
1.08 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIR
l The revenue of SC appears fairly good in its line.
l SC’s net profit
margin is poor.
l SC’s return on
total assets is fair.
l
SC’s cost of sales is high, comparing with its revenue.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC appears large.
l
The accounts receivable of SC appears large.
l
The short-term loans of SC appear large.
l
SC’s revenue is in a fair
level, comparing with the size of its total assets.
LEVERAGE:
FAIR
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: Fair.
CONCLUSIONS
SC is considered large-sized in its line with
fair financial conditions. The large amount of inventory & accounts
receivable & short-term loans may be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.17 |
|
|
1 |
Rs.82.99 |
|
Euro |
1 |
Rs.70.62 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIT |
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.