MIRA
INFORM REPORT
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Report Date : |
27.07.2013 |
IDENTIFICATION DETAILS
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Name : |
SLON MAGNETIC SEPARATOR LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
11.11.2002 |
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Com. Reg. No.: |
360702210018271 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
manufacturing and selling of magnetic equipment |
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No. of Employees : |
335 |
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
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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
slon magnetic separator ltd.
shahe
industrial park, ganzhou city
jiangxi
province 341000 PR CHINA
TEL: 86
(0) 797-8186426/8186428
FAX: 86
(0) 797-8186429
EXECUTIVE SUMMARY
Date of Registration : november 11, 2002
REGISTRATION NO. : 360702210018271
LEGAL FORM : Limited liabilities company
CHIEF EXECUTIVE :
xu yixiang (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL :
cny 60,000,000
staff : 335
BUSINESS CATEGORY :
manufacturing
Revenue : CNY 454,270,000 (AS OF DEC. 31, 2012)
EQUITIES : CNY 153,160,000 (AS OF DEC. 31, 2012)
WEBSITE : http://slon.net.cn
E-MAIL :
slon@slon.com.cn & slon1988@yahoo.com.cn
PAYMENT : AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION : FAIRly good
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.: 360702210018271 on November 11, 2002
SC’s Organization Code Certificate
No.: 74427574-4
SC’s registered capital: cny 60,000,000
SC’s paid-in capital: cny 60,000,000
Registration Change Record:-
|
Date |
Change
of Contents |
Before
the change |
After the change |
|
2013-6-24 |
Legal Representative |
Xiong Dahe |
Xu Yixiang |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Ganzhou Nonferrous
Metallurgical Research Institute |
51 |
|
Other individuals |
49 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Xu
Yixiang |
|
Deputy General Manager |
Wang Zhaoyuan |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name
%
of Shareholding
Ganzhou Nonferrous Metallurgical Research
Institute 51
Other individuals 49
Ganzhou Nonferrous Metallurgical Research Institute
-------------------------------------------
Registration No.: 360700010001813
Date of Registration: May 31, 2001
Legal Form: State-owned Enterprise
Registered Capital: CNY 54,600,000
Legal Representative: Liu Bolu
MANAGEMENT
Xu
Yixiang, Legal
Representative, Chairman and General Manager
---------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Qualification:
University
Ø
Working
experience (s):
From June 2013 to present, working in SC as legal
representative, chairman and general manager
Wang Zhaoyuan, Deputy General
Manager
--------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 50’s
Ø
Working
experience (s):
At present, working in SC as deputy general manager
BUSINESS OPERATION
SC’s registered business scope includes developing,
manufacturing, and selling equipment for magnetic, electronic, electrical,
mining, and metallurgy; installation, debugging, and technical services for
mining equipment; mining process test; researching, processing, and selling
metallurgical products, electronic components, magnetic materials, non-ferrous
metal materials, and ferrous metals; importing and exporting related products.
SC is mainly
engaged in manufacturing and selling magnetic equipment.
SC’s
products mainly include: SLon vertical ring and pulsating high gradient
magnetic separator, such as SLon-1000, SLon-1250, SLon-1500, SLon-1750,
SLon-2000 and SLon-2500
SC sources its materials 90% from domestic
market, and 10% from overseas market. SC sells 60% of its products in domestic
market, and 40% to overseas market, mainly USA, South Africa, and Southeast
Asia.
The
buying terms of SC include T/T, L/C and Credit of 30-60 days. The payment terms
of SC include T/T, L/C and Credit of 30-60 days.
Staff & Office:
--------------------------
SC is
known to have approx. 335 staff at present.
SC rents an area
as its operating office & factory of approx. 78,000 sq. meters at the
heading address.
RELATED COMPANY
n
Ganzhou Tongfeng Metal Pipe Co., Ltd.
Registration No.: 360703210007122
Date of Registration: March 30, 2006
Legal Form: Limited Liabilities Company
Registered Capital: CNY 30,000,000
Legal Representative: Xiong Dahe
Web: www.gztf.com.cn
Address: South of Yingbin Avenue, Economy & Technology
Development Zone, Ganzhou, Jiangxi
Tel: 86 (0) 797-8325789/8325758
Fax: 86 (0) 797-8325758
E-mail: info@gztf.com.cn
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
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Unit: CNY’000 |
As
of Dec. 31, 2012 |
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Cash |
7,460 |
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Notes receivable |
0 |
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Accounts
receivable |
72,480 |
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Advances to
suppliers |
0 |
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Other receivable |
57,540 |
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Inventory |
35,230 |
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Non-current
assets within one year |
0 |
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Other current
assets |
68,160 |
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------------------ |
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Current assets |
240,870 |
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Fixed assets |
53,250 |
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Construction in
progress |
0 |
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Intangible
assets |
0 |
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Deferred income
tax assets |
0 |
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Other
non-current assets |
43,680 |
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------------------ |
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Total assets |
337,800 |
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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 |
7,910 |
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Welfares payable |
0 |
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Taxes payable |
0 |
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Advances from
clients |
144,280 |
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Other payable |
1,280 |
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Other current
liabilities |
25,430 |
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------------------ |
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Current
liabilities |
178,900 |
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Non-current
liabilities |
5,740 |
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------------------ |
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Total
liabilities |
184,640 |
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Equities |
153,160 |
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------------------ |
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Total
liabilities & equities |
337,800 |
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============= |
Income Statement
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Unit: CNY’000 |
As of Dec. 31,
2012 |
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Revenue |
454,270 |
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Cost of sales |
333,110 |
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Sales expense |
22,330 |
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Management expense |
9,510 |
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Finance expense |
520 |
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Profit before
tax |
90,590 |
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Less: profit tax |
13,880 |
|
Profits |
76,710 |
Important Ratios
=============
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|
As of Dec. 31, 2012 |
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*Current ratio |
1.35 |
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*Quick ratio |
1.15 |
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*Liabilities
to assets |
0.55 |
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*Net profit
margin (%) |
16.89 |
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*Return on
total assets (%) |
22.71 |
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*Inventory /
Revenue ×365 |
29 days |
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*Accounts
receivable/ Revenue ×365 |
59 days |
|
*
Revenue/Total assets |
1.34 |
|
* 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 goods sold 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 fairly good
level.
l
The inventory of SC appears average.
l
The accounts receivable of SC is maintained in an
average level.
l
SC has no short-term loans.
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 Good.
CONCLUSIONS
SC is considered medium-sized in its line with
fairly good financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.58.91 |
|
UK Pound |
1 |
Rs.90.68 |
|
Euro |
1 |
Rs.78.22 |
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.