MIRA
INFORM REPORT
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Report Date : |
20.07.2013 |
IDENTIFICATION DETAILS
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Name : |
FICONT INDUSTRY (BEIJING) INC. |
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Registered Office : |
No. 3 Chuangyi East 2nd Road,
East Zone Of Tongzhou Economic Development Zone, Beijing 101108 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
21.07.2005 |
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Com. Reg. No.: |
110105008656146 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
manufacturing and selling of suspension
equipment, tower lifts, climb assist, ladders and fall arrest system. |
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No. of Employees : |
130 |
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 – March 31st 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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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
FICONT INDUSTRY (BEIJING) INC.
no. 3
chuangyi east 2nd road, east zone of tongzhou economic development zone,
beijing 101108 PR CHINA
TEL: 86 (0)
10-69598935/67707169/69597866/69597656
FAX: 86 (0) 10-69598969
EXECUTIVE SUMMARY
Date of
Registration : july 21, 2005
REGISTRATION NO. : 110105008656146
LEGAL FORM : Limited Liability Company
CHIEF EXECUTIVE : liu zhixin (LEGAL
REPRESENTATIVE)
REGISTERED CAPITAL :
CNY 13,333,333
staff : 130
BUSINESS CATEGORY :
MANUFACTURING
Revenue :
CNY 56,680,000 (AS OF DEC. 31,
2012)
EQUITIES :
CNY 58,240,000 (AS OF DEC. 31, 2012)
WEBSITE : www.3slift.com
E-MAIL :
sales@3slift.com
PAYMENT : AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.14 = 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 limited liabilities company of PRC with State Administration
of Industry & Commerce (SAIC) under registration No.: 110105008656146 on July 21, 2005.
SC’s Organization Code Certificate
No.: 77864147-4
%20INC%20%20-%20229277%2020-Jul-2013_files/image003.jpg)
SC’s registered capital: CNY 13,333,333
SC’s paid-in capital: CNY 13,333,333
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 |
|
Tianjin Bangsheng Equity
Investment Fund Partnership (Limited Partnership) |
20.00 |
|
Liu Zhixin |
60.56 |
|
Other 4 individuals |
19.44 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Liu
Zhixin |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name
%
of Shareholding
Tianjin Bangsheng Equity
Investment Fund Partnership (Limited Partnership) 20.00
Liu Zhixin 60.56
Other 4 individuals 19.44
%20INC%20%20-%20229277%2020-Jul-2013_files/image008.gif){kind=small}
Tianjin Bangsheng Equity Investment
Fund Partnership (Limited Partnership)
----------------------------------------
Date of Registration: June 6, 2011
Registration No.: 120191000086943
Legal Form: Limited Partnership
Registered Capital: CNY 500,000,000
MANAGEMENT
Liu
Zhixin , Legal
Representative, Chairman and General Manager
--------------------------------------------------------------------------------------------------
Ø
%20INC%20%20-%20229277%2020-Jul-2013_files/image005.jpg){kind=small}
Gender: M
Ø
Qualification:
University
Ø
Working
experience (s):
From 2005
to present, working in SC as legal representative, chairman and general manager
BUSINESS OPERATION
SC’s registered business scope includes manufacturing
suspension equipment, tower lifts, climb assist, ladders and fall arrest
system; general cargo, technology promotion; importing and exporting goods and
technology, import and export agent; selling machinery and equipment, building
materials, metal materials, stationery, electronic products; leasing and
maintenance of construction machinery and equipment.
SC is
mainly engaged in manufacturing and selling suspension equipment, tower lifts, climb
assist, ladders and fall arrest system.
Brand: 3S Lift
SC’s
products mainly include: service lift, climbing aid system, aluminum ladder,
fall protection system, auto descending device, etc.
%20INC%20%20-%20229277%2020-Jul-2013_files/image007.jpg)
SC sources its materials 100% from domestic market, mainly Beijing. SC sells 40% of its products in domestic market, and 60% 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 Customer:
=============
Matakana Staging
& Seating Inc.
Staff & Office:
--------------------------
SC is
known to have approx. 130
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 known to have a branch at present,
n
Ficont Industry (Beijing) Inc. Technology Service Branch
----------------------------------------------------------------------
Date of Registration: November 21, 2008
Registration No.: 110112011477692
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 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 |
|
11,160 |
|
|
Notes receivable |
0 |
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Accounts
receivable |
33,010 |
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Advances to
suppliers |
0 |
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Other receivable |
960 |
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Inventory |
9,260 |
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Non-current
assets within one year |
0 |
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Other current
assets |
9,080 |
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|
------------------ |
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Current assets |
63,470 |
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Fixed assets |
1,920 |
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Long-term prepaid
expenses |
0 |
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Deferred income
tax assets |
0 |
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Other
non-current assets |
14,130 |
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|
------------------ |
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Total assets |
79,520 |
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============= |
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Short-term loans |
0 |
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Notes payable |
0 |
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Accounts payable |
6,660 |
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Advances from clients |
3,680 |
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Other payable |
5,590 |
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Other current
liabilities |
5,350 |
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|
------------------ |
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Current
liabilities |
21,280 |
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Non-current
liabilities |
0 |
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------------------ |
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Total
liabilities |
21,280 |
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Equities |
58,240 |
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------------------ |
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Total
liabilities & equities |
79,520 |
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============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
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Revenue |
56,680 |
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Cost of sales |
25,990 |
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Sales expense |
4,830 |
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Management expense |
8,270 |
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Finance expense |
4,010 |
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Profit before
tax |
15,750 |
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Less: profit tax |
2,120 |
|
13,630 |
Important Ratios
=============
|
|
As
of Dec. 31, 2012 |
|
*Current ratio |
2.98 |
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*Quick ratio |
2.55 |
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*Liabilities
to assets |
0.27 |
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*Net profit
margin (%) |
24.05 |
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*Return on
total assets (%) |
17.14 |
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*Inventory /
Revenue ×365 |
60 days |
|
*Accounts
receivable/ Revenue ×365 |
213 days |
|
*
Revenue/Total assets |
0.71 |
|
* Cost of
sales / Revenue |
0.46 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l
The revenue of SC appears
average in its line.
l
SC’s net profit margin is good.
l
SC’s return on total assets is good.
l
SC’s cost of sales is low, comparing with its revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in a fairly
good level.
l
SC’s quick ratio is maintained in a fairly good
level.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC appears large.
l
SC has no short-term loans.
l
SC’s revenue is in a
fair level, comparing with the size of its total assets.
LEVERAGE:
FAIRLY GOOD
l
The debt ratio of SC is low.
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 accounts receivable may
be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.79 |
|
UK Pound |
1 |
Rs.91.03 |
|
Euro |
1 |
Rs.78.52 |
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 |
|
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 |
|
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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.