MIRA
INFORM REPORT
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Report Date : |
16.12.2013 |
IDENTIFICATION DETAILS
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Name : |
HUSCO HYDRAULICS (SHANGHAI) LTD. |
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Registered Office : |
No. 235 East
Jiangtian Road, Songjiang Industrial Zone, Shanghai 201600 Pr |
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Country : |
China |
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Financials (as on) : |
31.08.2013 |
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Date of Incorporation : |
25.08.1999 |
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Com. Reg. No.: |
310000400222338 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
manufacturer of various kinds of control valves including ratio, servo-hydraulic technology of hydraulic
control valves, proportional servo control valves, hydraulic pumps, hydraulic
cylinders. |
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No. of Employees : |
161 |
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
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Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
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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 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.
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Source : CIA |
Company name & address
HUSCO Hydraulics
(Shanghai) Ltd.
NO. 235 EAST
JIANGTIAN ROAD, SONGJIANG INDUSTRIAL ZONE
SHANGHAI 201600
PR CHINA
TEL: 86 (0)
21-61967000 / 61967096
FAX: 86 (0)
21-61967999
EXECUTIVE SUMMARY
Date of Registration : august 25, 1999
REGISTRATION NO. : 310000400222338
LEGAL FORM : Wholly foreign-owned enterprise
CHIEF EXECUTIVE : Agustin A. Ramirez (LEGAL
REPRESENTATIVE)
REGISTERED CAPITAL : usd 6,600,000
staff : 161
BUSINESS CATEGORY :
MANUFACTURING & TRADING
REVENUE :
CNY 97,626,000 (JAN. 1 2013 TO AUG. 31, 2013)
EQUITIES :
CNY 52,077,000 (AS OF AUG. 31, 2013)
WEBSITE : N/A
E-MAIL :
inquiries@huscointl.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 wholly foreign-owned enterprise of PRC with
State Administration of Industry & Commerce (SAIC) under registration No.: 310000400222338 on August 25, 1999.
SC’s Organization Code Certificate
No.: 60740067-6
%20LTD%20%20%20-%20246533%2016-Dec-2013_files/image002.jpg)
SC’s registered capital: usd 6,600,000
SC’s paid-in capital: usd 6,600,000
Registration Change Record:-
|
Date |
Change
of Contents |
Before
the change |
After
the change |
|
-- |
Company
Name |
Husco
Hydraulics (Shanghai) Ltd. |
Husco-Kayaba Hydraulics (Shanghai)
Ltd. |
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Registered Capital |
usd 3,600,000 |
usd 6,600,000 |
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Shareholder (s) (% of Shareholding) |
Husco International Inc. (USA) 91.25% Kayaba Industry Co., Ltd. 8.75% |
Husco International Inc. (USA) 100% |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Husco International Inc. (USA) |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Agustin A.
Ramirez |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name
%
of Shareholding
Husco International Inc. (USA) 100
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HUSCO International, Inc.
2239 Pewaukee Road
Waukesha, WI 53188
Phone: 262-513-4200
Fax: 262-513-4514
Web: www.huscointl.com
MANAGEMENT
Agustin A. Ramirez, Legal
Representative, Chairman and General Manager
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Ø
Gender: M
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as legal representative, chairman, and general manager
***Note: The given contact person Mr. Ming Sun is working in SC at present.
BUSINESS OPERATION
SC’s registered business scope includes designing and manufacturing
ratio, servo-hydraulic technology of hydraulic control valves, proportional
servo control valves, hydraulic pumps, hydraulic cylinders, hydraulic motors
and related accessories, parts; selling self-manufactured products and
providing after-sales service; wholesaling, importing and exporting the above
mentioned products and similar products (excluding specific products),
commission agent (excluding auction), providing related business (with permit if
needed).
SC is mainly
engaged in manufacturing various kinds of control valves.
SC’s
products mainly include: ratio, servo-hydraulic technology of hydraulic
control valves, proportional servo control valves, hydraulic pumps, hydraulic
cylinders.
SC sources its materials 40% from overseas market and 60% from domestic market. SC sells 70% of its products in domestic market and 30% to overseas market.
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.
*Major Customers:
==============
Yuchai Group Co., Ltd.
Husco Automotive Products LLC.
*Major Supplier:
============
Wuxi Fangzhan Machinery Manufacture Co., Ltd.
Staff & Office:
--------------------------
SC is
known to have approx. 161 staff
at present.
SC owns an area as
its operating office & factory of approx. 12,000 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’s supplier
refused 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
Financial Summary
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Unit: CNY’000 |
As
of Aug. 31, 2013 |
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Total assets |
177,903 |
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------------- |
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Short-term
liabilities |
15,042 |
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Total
liabilities |
125,826 |
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Equities |
52,077 |
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------------- |
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Unit: CNY’000 |
Jan. 1 2013 to Aug. 31, 2013 |
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Revenue |
97,626 |
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Cost of sales |
71,580 |
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Profit before
tax |
14,514 |
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Less: profit tax |
0 |
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Profits |
14,514 |
Important Ratios
=============
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As
of Aug. 31, 2013 |
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*Liabilities
to assets |
0.70 |
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*Net profit
margin (%) |
14.87 |
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*Return on
total assets (%) |
8.16 |
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*Revenue/Total
assets |
0.55 |
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*Cost of sales
/ Revenue |
0.73 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIRLY GOOD
l
The revenue of SC appears
fairly good in its line.
l
SC’s net profit margin is fairly good.
l
SC’s return on total assets is fairly good.
l
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY:
FAIR
l
SC’s revenue is in a
fair 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.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.13 |
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UK Pound |
1 |
Rs.101.53 |
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Euro |
1 |
Rs.85.41 |
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 |
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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 |
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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.