MIRA
INFORM REPORT
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Report Date : |
14.12.2013 |
IDENTIFICATION DETAILS
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Name : |
SHANDONG HENGRICH TECHNOLOGY STOCK CO.,
LIMITED |
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Registered Office : |
No. 0655 Jiajia Village, Baishabu Town, Lanshan District Linyi, Shandong Province 276035 Pr |
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Country : |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
29.01.2002 |
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Com. Reg. No.: |
371300018018202 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
manufacturing and selling of malleable castings, ductile iron casting and grey
cast iron items. |
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No. of Employees : |
446 |
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 – September 30th, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
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 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 & address
SHANDONG HENGRICH TECHNOLOGY STOCK CO., LIMITED
no. 0655 jiajia village, baishabu town, lanshan
district
linyi, shandong PROVINCE 276035 PR CHINA
TEL: 86 (0) 539-8651085
FAX: 86 (0) 539-8652088
EXECUTIVE SUMMARY
Date of Registration : january 29, 2002
REGISTRATION NO. : 371300018018202
LEGAL FORM : Shares limited company
CHIEF EXECUTIVE :
yang yunduo (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL :
CNY 32,520,000
staff : 446
BUSINESS CATEGORY :
MANUFACTURING
Revenue : CNY 155,924,000 (AS OF DEC.
31, 2012)
EQUITIES : CNY 45,925,000 (AS OF
DEC. 31, 2012)
WEBSITE : www.dianlijinju.com
E-MAIL :
hth@hetaiheng.com
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND :
fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.09 = 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 shares limited company of PRC with State Administration of
Industry & Commerce (SAIC) under registration No.: 371300018018202 on January 29, 2002.
SC’s Organization Code Certificate
No.: 73473496-X
SC’s Tax No.: 37130273473496X
SC’s registered capital: CNY 32,520,000
SC’s paid-in capital: CNY 32,520,000
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 |
|
Shandong Genkee Trade Group
Co., Ltd. |
56.335 |
|
Wu Jianwang |
5.166 |
|
Other shareholders |
38.499 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Yang
Yunduo |
|
Vice Chairman |
Liu
Xichen |
|
Director |
Zhang
Jibin |
|
Geng
Jiahong |
|
|
Wang
Qi |
|
|
Supervisor |
Sun Chengjian |
|
Chen Yansen |
|
|
Zhang Zhisheng |
RECENT
DEVELOPMENT
SC has got the certificate ISO9001.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Shandong Genkee Trade Group Co.,
Ltd. 56.335
Wu Jianwang 5.166
Other shareholders 38.499
Shandong Genkee Trade Group Co., Ltd.
------------------------------------------
Date of Registration: April 2, 2008
Registration No.: 371300200002823
Legal Form: Limited
Liabilities Company
Registered Capital: CNY 32,600,000
Address: No.260 Shuangyuehu Road, LinYi
High-tech Industrial Development Zone, Shandong
Tel: +86-539-8178166
Fax: +86-539-8171166
E-mail: genkee@genkee.cn
Website: www.genkee.cn
MANAGEMENT
Yang
Yunduo, Legal
Representative, Chairman and General Manager
------------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 57
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as legal representative, chairman and general manager, also as principal of Shandong Hengrich Technology Stock Co., Limited Hi-tech Zone Branch
Liu
Xichen, Vice Chairman
-----------------------------------------------
Ø
Gender: M
Ø
Age: 49
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as vice chairman
Director
-----------
Zhang Jibin
Geng Jiahong
Wang Qi
Supervisor
--------------
Sun Chengjian
Chen Yansen
Zhang Zhisheng
BUSINESS
OPERATION
SC’s registered business scope includes manufacturing and
selling nodular iron casting, aluminum and copper electrical fittings;
processing machinery; selling power accessories, high-speed rail fittings,
insulators iron cap, auto parts, electric car accessories; goods import and
export.
SC is mainly
engaged in manufacturing and selling of malleable
castings, ductile iron casting and grey cast iron items.
SC’s products mainly include:
· Suspension Insulator Cap
Post
Insulator fitting
Railway
Insulator Cap
SC sources its materials 100% from domestic market, mainly Shandong. SC sells 95% of its products in domestic market, and 5% to overseas market, mainly USA, Europe, Mid East, Southeast Asia, etc.
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 Customers:
==============
Inner
Mongolia Jingcheng High Voltage Insulator Co., Ltd.
Suzhou
Electric Porcelain Factory Co., Ltd.
Lianyungang
Huanghai Machinery Co., Ltd.
Chengdu
Huanqiu Special Glass Manufacturing Co., Ltd.
Zhejiang
Jinlihua Electric Co., Ltd.
*Major Suppliers:
==============
Handan
Xinrunda Materials Co., Ltd.
Linyi
Jianfeng Casting Material Co., Ltd.
Beijing
Yuda Tianshi Commercial & Trade Co., Ltd.
Linyi
Zhengke Electronic Co., Ltd.
Staff & Office:
--------------------------
SC is
known to have approx. 446 staff
at present.
SC owns an area as
its operating office & factory of approx. 66,000 sq. meters at the heading
address.
RELATED
COMPANY
SC is known to
have a branch at present,
Shandong Hengrich Technology Stock Co., Limited Hi-tech Zone
Branch
--------------------------------------------------------
Date of Registration: September 24, 2013
Registration No.: 371330100000166
Legal Form: Branch
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’s
suppliers declined to make any comments.
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, 2011 |
As
of Dec. 31, 2012 |
|
948 |
3,423 |
|
|
Notes receivable |
550 |
14,870 |
|
Accounts
receivable |
44,690 |
43,377 |
|
Advances to
suppliers |
1,856 |
3,146 |
|
Other receivable |
1,842 |
20,613 |
|
Inventory |
31,617 |
41,692 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
81,503 |
127,121 |
|
Fixed assets |
14,558 |
13,949 |
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Construction in
progress |
0 |
395 |
|
Intangible
assets |
2,443 |
2,360 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred income
tax assets |
42 |
101 |
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Other
non-current assets |
0 |
2,875 |
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------------------ |
------------------ |
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Total assets |
98,546 |
146,801 |
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|
============= |
============= |
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Short-term loans |
4,500 |
44,781 |
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Notes payable |
0 |
0 |
|
Accounts payable |
33,402 |
37,505 |
|
Wages payable |
11,870 |
12,422 |
|
Taxes payable |
1,553 |
1,539 |
|
Advances from
clients |
1,503 |
182 |
|
Other payable |
10,761 |
807 |
|
Other current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
63,589 |
97,236 |
|
Non-current
liabilities |
4,060 |
3,640 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
67,649 |
100,876 |
|
Equities |
30,897 |
45,925 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
98,546 |
146,801 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
As of Dec. 31, 2012 |
|
Revenue |
146,180 |
155,924 |
|
Cost of sales |
123,729 |
129,095 |
|
Taxes and surcharges |
700 |
979 |
|
Sales expense |
4,396 |
5,447 |
|
Management expense |
10,673 |
11,785 |
|
Finance expense |
614 |
1,706 |
|
Non-business
income |
788 |
471 |
|
Non-business expenditure |
17 |
22 |
|
Profit before
tax |
6,712 |
6,857 |
|
Less: profit tax |
1,355 |
828 |
|
5,357 |
6,029 |
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
1.28 |
1.31 |
|
*Quick ratio |
0.78 |
0.88 |
|
*Liabilities
to assets |
0.69 |
0.69 |
|
*Net profit
margin (%) |
3.66 |
3.87 |
|
*Return on
total assets (%) |
5.44 |
4.11 |
|
*Inventory /
Revenue ×365 |
79 days |
98 days |
|
*Accounts
receivable/ Revenue ×365 |
112 days |
102 days |
|
*Revenue/Total
assets |
1.48 |
1.06 |
|
*Cost of sales
/ Revenue |
0.85 |
0.83 |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
l
The revenue of SC appears
fairly good in its line.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears large.
l
The accounts receivable of SC appears large.
l
SC’s short-term loans appear large in 2012.
l
SC’s revenue is in an
average 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 Stable.
CONCLUSIONS
SC is considered medium-sized in its line with
fairly stable 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.62.13 |
|
UK Pound |
1 |
Rs.101.53 |
|
Euro |
1 |
Rs.85.41 |
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.