MIRA INFORM REPORT
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Report Date : |
12.01.2013 |
IDENTIFICATION DETAILS
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Name : |
HANGZHOU NEW TIME VALVE CO., LTD. |
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Registered Office : |
No. 1888 Huannan Road, Linglong Industrial Centralized
Zone, Lin’an, Hangzhou, Zhejiang Province 311300
PR |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
01.05.2001 |
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Com. Reg. No.: |
330100400024785 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
Subject engaged
in manufacturing and selling various kinds of valves. |
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No. of Employees : |
200 |
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 Complaint |
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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
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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
HANGZHOU NEW TIME VALVE CO., LTD.
NO.
1888 HUANNAN ROAD, LINGLONG INDUSTRIAL centralizeD ZONE, LIN’AN, HANGZHOU, ZHEJIANG
PROVINCE 311300 PR CHINA
TEL: 86
(0) 571-61071807/61071806 FAX: 86
(0) 571-63759949
EXECUTIVE SUMMARY
INCORPORATION DATE : may 1, 2001
REGISTRATION NO. : 330100400024785
REGISTERED LEGAL FORM : Chinese-foreign
equity joint venture enterprise
CHIEF EXECUTIVE :
MR. tao ren’gen (CHAIRMAN)
STAFF STRENGTH :
200
REGISTERED CAPITAL : CNY 20,000,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 46,660,000 (AS OF DEC. 31, 2011)
EQUITIES :
CNY 74,740,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.22 = 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 Renminbi
SC was registered as a Chinese-foreign equity joint venture
enterprise at Hangzhou Municipal Administration for Industry & Commerce (AIC
- The official body of issuing and renewing business license) on May 1, 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 valves and hardware; selling self-made
products.
SC is mainly
engaged in manufacturing and selling various kinds of valves.
Mr. Tao Ren’gen is
the legal representative and chairman of SC at present.
SC is known to
have approx. 200 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Lin’an. The detailed
information of the area is unspecified.
http://www.hzntfm.com/ It can’t be
landed for technical reasons some times.
No significant events or changes were found during our checks with local
AIC.
MAIN SHAREHOLDERS:
Name
% of Shareholding
Long Yang Intertrading
Limited 25
Liu Guiying 27
Lv Youyu
11
Yin Feifei
14
Wang Binbing
23
Note: The nationality of SC’s foreign
shareholder Long Yang Intertrading Limited
is unspecified.
l
Legal representative and chairman:
Mr. Tao Ren’gen) is currently responsible for the overall management of
SC.
Working Experience(s):
At present Working
in SC as legal representative and chairman
Other officials:
……………….
Wang Binbing
Vice chairman
Chai Limin Vice chairman
Lv Youyu Director
Yin Feife Director
SC is mainly
engaged in manufacturing and selling various kinds of valves.
SC’s products mainly include: alumina valve, slurry valve, universal
valve, butterfly valve, check valve, ball valve, globe valve, plug valve, power
station valve, etc.
SC sources its materials 95% from domestic
market and 5% from oversea market. SC sells 50% of its products in domestic
market, and 50% to overseas market, mainly Japan and Southeast Asia.
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.
Note:
SC’s management declined to release its major clients and suppliers.
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 and our debt collection record concerning SC.
Trade payment experience: We did not
acquire any name of trade/service suppliers in local AIC 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.
SC’s accountant
refused to release the bank details.
Financial Summary
Unit: CNY’000
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as of Dec. 31,
2010 |
as of Dec. 31,
2011 |
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Current assets |
57,280 |
64,840 |
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Current liabilities |
9,710 |
15,660 |
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Total Liabilities |
9,710 |
15,660 |
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Shareholders equities |
73,290 |
74,740 |
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Total Assets |
83,000 |
90,400 |
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Turnover |
/ |
46,660 |
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Cost of goods sold |
/ |
35,000 |
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Profit before tax |
/ |
1,600 |
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Less: profit tax |
/ |
60 |
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Net profit |
/ |
1,540 |
Note: we did not find SC’s detailed
financial reports.
Important
Ratios
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as of Dec. 31,
2010 |
as of Dec. 31,
2011 |
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*Current ratio |
5.90 |
4.14 |
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*Liabilities
to assets |
0.12 |
0.17 |
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*Net profit
margin (%) |
/ |
3.30 |
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*Return on
total assets (%) |
/ |
1.70 |
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*Turnover/Total
assets |
/ |
0.52 |
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* Cost of
goods sold/Turnover |
/ |
0.75 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in its line in
2011.
l
SC’s net profit margin is average in 2011.
l
SC’s return on total assets is average in 2011.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a fairly
good level in both years.
l
SC’s turnover is in a fair level in 2011, comparing
with the size of its total assets.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is low in both years.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Stable.
SC is considered medium-sized in its line with stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
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Indian
Rupees |
|
US Dollar |
1 |
Rs.54.53 |
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UK Pound |
1 |
Rs.88.05 |
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Euro |
1 |
Rs.72.29 |
INFORMATION DETAILS
|
Report
Prepared by : |
NLM |
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 |
-- |
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.