MIRA INFORM REPORT
|
Report Date : |
03.08.2013 |
IDENTIFICATION DETAILS
|
Name : |
ZHUZHOU LUKE'S METAL POWDER PRODUCT CO., LTD. |
|
|
|
|
Registered Office : |
Industrial Park Of Lukou Economic Development Zone, Zhuzhou County, Zhuzhou City, Hunan Province, 412100, Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
18.10.2001 |
|
|
|
|
Com. Reg. No.: |
430200400001173 |
|
|
|
|
Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
|
|
|
|
Line of Business : |
Manufacturing and selling alloy products |
|
|
|
|
No. of Employees : |
60 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
Payment Behaviour : |
Slow but correct |
|
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 |
|
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 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
ZHUZHOU LUKE'S METAL POWDER PRODUCT CO., LTD.
INDUSTRIAL PARK OF LUKOU ECONOMIC
DEVELOPMENT ZONE,
ZHUZHOU COUNTY, ZHUZHOU CITY, HUNAN
PROVINCE, 412100, PR CHINA
TEL: 86 (0)
731-27625333 FAX: 86 (0)
731-27626168
EXECUTIVE SUMMARY
INCORPORATION DATE : OCT.
18, 2001
REGISTRATION NO. :
430200400001173
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE
ENTERPRISE
STAFF STRENGTH :
60
REGISTERED CAPITAL : USD 357,850
BUSINESS LINE :
MANUFACTURING AND SELLING
TURNOVER :
CNY 5,350,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 1,720,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIR
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.1333 = 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 Chinese-foreign equity joint venture enterprise
at local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on Oct. 18, 2001.
Company Status: Chinese-foreign equity joint venture
enterprise This form of business in PR
China is defined as a legal person. It is a limited co. jointly invested by
one or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of
capital investment. The investing parties exercise business management,
share profits and bear all risks and liabilities of the co. together. The
equity joint venture law requires that foreign party contribute not less
than 25% of the registered capital, with no maximum. The investing parties
are free to agree on method of profit distribution and liabilities bearing
according to the proportion of capital investment. Each investing parties
contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has a
limited duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition
position in international market may extend beyond the 50 years limit.
SC’s registered
business scope includes manufacturing and selling high density alloy injection molding
products, hard alloy injection molding products, stainless steel injection
molding products, Fe based injection molding products and bait & fishing
supplies, fine stationery, pen and hardware parts; repair service for the
selling goods; related products R & D.
SC is mainly
engaged in manufacturing and selling alloy products.
Mr. Gao Kejun is legal representative and chairman of SC at
present.
SC is known to have approx. 60 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the industrial park of Zhuzhou. Our checks
reveal that SC owns the total premise about 10,000 square meters.
http://gb.heavy-tungsten.com/
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
E-mail: henrv@heavy-tungsten.com ; info@heavy-tungsten.com
No significant changes were found during our checks with the local
Administration for Industry and Commerce.
SC has passed ISO 9001 Certified since 2005.
See below for SC as executive party (defendant).
|
Executed Party |
Zhuzhou Luke's Metal Powder Product Co.,
Ltd. |
|
Organization
Code |
- |
|
Court |
Jiangxi Province Ganzhou City Intermediate People’s Court |
|
Date
of Case |
August 20, 2012 |
|
Case Number |
(2012) 00064 |
|
Claim
Amount |
CNY 5,761,690 |
|
Case
Status |
In process |
Remark: Due to the lack of information, we are unable to provide the cause of
action, judgment or other information.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Zhuzhou Junding Industry Co., Ltd. 71.496
Top Horizon Developments Limited (Bahamas) 28.504
Zhuzhou Junding Industry Co., Ltd.
--------------------------------------------
Registration number: 430221000003923
Legal representative: Gao Kejun
Legal form: Limited Liabilities Company
Registered capital: CNY 1,600,000
Incorporation date: September 20, 2005
l
Legal representative and chairman:
Mr. Gao Kejun born in 1973. He is
currently responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as legal representative and chairman.
Also working in Zhuzhou Junding
Industry Co., Ltd. as legal
representative.
l General manager:
Mr. Zhu Yufeng , born in 1972. He is
currently responsible for the daily management of SC.
Working Experience(s):
At present Working in SC as general manager.
SC is mainly
engaged in manufacturing and selling alloy products.
SC’s products mainly include: tungsten bucking bar, tungsten alloy rod,
tungsten alloy crankshaft brick, none-toxic tungsten high-density alloy fishing
sinker, tungsten copper plate, etc.
Brand: GAOFEI.
SC sources its materials 100% from domestic
market. SC sells 20% of its products in domestic market and 80% to the overseas
market, mainly in Europe and Southeast Asia.
The buying terms of SC include Check, T/T, and Credit of 30-60 days. The
payment terms of SC include Check, L/C, T/T and Credit of 30-60 days.
Note: SC’s
management declined to release its major suppliers and clients.
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 records 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
Zhuzhou Branch Business Department
AC#：595057347219
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2012 |
|
1,010 |
|
|
Inventory |
11,670 |
|
Accounts receivable |
3,470 |
|
Advances to suppliers |
500 |
|
Notes receivable |
0 |
|
Other receivables |
1,740 |
|
Prepaid expenses |
0 |
|
Other current assets |
10 |
|
|
------------------ |
|
Current assets |
18,400 |
|
Fixed assets-net
value |
15,650 |
|
Long-term equity
investments |
200 |
|
Long-term
deferred expenses |
10 |
|
Intangible
assets |
1,180 |
|
Other assets |
0 |
|
|
------------------ |
|
Total assets |
35,440 |
|
|
============= |
|
Short loans |
2,500 |
|
Accounts payable |
9,540 |
|
Notes payable |
250 |
|
Advances from
clients |
340 |
|
Taxes payable |
-410 |
|
Accrued payroll |
580 |
|
Other payable |
5,190 |
|
Other current
liabilities |
0 |
|
|
------------------ |
|
Current
liabilities |
17,990 |
|
Long term
liabilities |
15,730 |
|
|
------------------ |
|
Total
liabilities |
33,720 |
|
Equities |
1,720 |
|
|
------------------ |
|
Total
liabilities & equities |
35,440 |
|
|
============= |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31,
2012 |
|
Turnover |
5,350 |
|
Cost of goods
sold |
3,340 |
|
Taxes and
additional of main operation |
10 |
|
Sales expense |
260 |
|
Management expense |
830 |
|
Finance expense |
1,580 |
|
Non-operating
income |
20 |
|
Non-operating expense |
0 |
|
Profit before
tax |
-650 |
|
Less: profit tax |
0 |
|
Profits |
-650 |
Important Ratios
=============
|
|
as of Dec. 31, 2012 |
|
*Current ratio |
1.02 |
|
*Quick ratio |
0.37 |
|
*Liabilities to
assets |
0.95 |
|
*Net profit
margin (%) |
-12.15 |
|
*Return on
total assets (%) |
-1.83 |
|
*Inventory
/Turnover ×365 |
796 days |
|
*Accounts
receivable/Turnover ×365 |
237 days |
|
*Turnover/Total
assets |
0.15 |
|
* Cost of
goods sold/Turnover |
0.62 |
PROFITABILITY:
FAIR
l
The turnover of SC appears average in 2012.
l
SC’s net profit margin is poor in 2012.
l
SC’s return on total assets is fair in 2012.
l
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a normal
level in 2012.
l
SC’s quick ratio is maintained in a poor level in
2012.
l
The inventory of SC appears large in 2012.
l
The accounts receivable of SC appears average in
2012.
l
The short-term loan appears fairly large in 2012.
l
SC’s turnover is in a poor level, comparing with
the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is high in 2012.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fair.
SC is considered small-sized in its line with fair financial conditions.
The large amount of inventory and short-term loan could be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.80 |
|
|
1 |
Rs.91.95 |
|
Euro |
1 |
Rs.80.36 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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.