MIRA INFORM REPORT
|
Report Date : |
15.03.2013 |
IDENTIFICATION DETAILS
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Name : |
Suzhou
Parsun Power Machine Co., Ltd. |
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Registered Office : |
no. 18 Jinfeng Road, Wuzhong District, Suzhou, Jiangsu Province 215101 |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
28.04.2004 |
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Com. Reg. No.: |
320500400020269 |
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Legal Form : |
Chinese-Foreign Equity Joint
Venture Enterprise |
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Line of Business : |
Engaged
in manufacturing, and selling general small gasoline engine, marine power and
its accessories. |
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No. of Employees : |
127 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
|
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.
|
Source : CIA |
Company
name and address
Suzhou Parsun Power Machine Co.,
Ltd.
no. 18
jinfeng road, wuzhong district
suzhou,
jiangsu province 215101 PR CHINA
TEL: 86
(0) 512-66571365/13905155047/15151479065/66212730
FAX: 86
(0) 512-66212755
EXECUTIVE SUMMARY
Date of Registration : april 28, 2004
REGISTRATION NO. : 320500400020269
LEGAL FORM :
Chinese-foreign equity joint venture enterprise
REGISTERED CAPITAL :
cny 60,000,000
staff : 127
BUSINESS CATEGORY :
manufacturing & trading
Revenue : CNY 203,440,000 (AS OF DEC. 31, 2012)
EQUITIES : CNY 113,060,000 (AS OF DEC. 31, 2012)
WEBSITE : www.parsun.com.cn
E-MAIL : parsun2005@vip.163.com
PAYMENT : AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION : average
EXCHANGE RATE : CNY 6.22 = USD
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
Not yet be determined
LEGAL STATUS & HISTORY
SC was
established as a Chinese-foreign equity joint venture enterprise of PRC with
State Administration of Industry & Commerce (SAIC) under registration No.:
320500400020269 on April 28, 2004.
SC’s Organization Code Certificate
No.: 76150524-9
SC’s Tax No.: 320500761505249
SC’s registered capital: CNY 60,000,000
SC’s paid-in capital: CNY 60,000,000
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 |
|
Suzhou Shunyi Investment Co.,
Ltd. |
65 |
|
Sparky Limited |
35 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and
Chairman |
Han Nianshi |
|
General Manager |
Xia Jian |
|
Director |
Xia Jian |
|
Lin Nong |
|
|
Supervisor |
Chen Ying |
RECENT DEVELOPMENT
No recent development was found during our checks at
present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Suzhou Shunyi Investment Co.,
Ltd.
65
Sparky Limited
35
u Suzhou
Shunyi Investment Co., Ltd.
-------------------------------------------------
Registration No.:
320500000038352
u Sparky
Limited
------------------------
Registration No.: 0370515
Date of Registration: July 28,
1992
Legal Form:
Status: Live
MANAGEMENT
Han
Nianshi, Legal Representative
and Chairman
----------------------------------------------------------------------------
Ø
Gender: M
Ø
ID# 32051119861211121X
Ø
Age: 27
Ø Working
experience (s):
At present, working in SC as
legal representative and chairman
Xia
Jian, General Manager and
Director
-------------------------------------------------------------
Ø
Gender: M
Ø
ID# 320504196910050010
Ø
Age: 44
Ø Working
experience (s):
At present, working in SC as
general manager and director
Director
----------
Lin Nong ID#
320502196112313012
Supervisor
--------------
Chen Ying ID#
320502195911111527
BUSINESS OPERATION
SC’s registered business scope
includes manufacturing general small gasoline engine, marine power
and its accessories; selling its products; and providing after services.
SC is
mainly engaged in manufacturing, and selling general small gasoline engine,
marine power and its accessories.
SC’s
products mainly include:
Outboard
engine
Generator
Pump
Inflatable
boat
Brand: 
SC sources its materials 100% from
domestic market. SC sells 60% of its products in domestic market, and 40% to
overseas market, mainly U.S.A., Southeast Asia, etc.
The
buying terms of SC include Check, T/T and Credit of 30-60 days. The payment
terms of SC include Check, T/T, L/C and Credit of 30-60 days.
*Major
Client*
-----------------
Coleman
Outboard Motors
Staff & Office:
--------------------------
SC is
known to have approx. 127 staff
at present.
SC
rents an area as its operating office and factory, but the detailed information
is unknown.
RELATED COMPANY
SC is known to have a
branch at present,
Suzhou Parsun Power Machine Co., Ltd. Nanjing 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 local SAIC.
FINANCIALS
Balance Sheet
|
Unit:
CNY’000 |
As of Dec. 31, 2012 |
|
52,700 |
|
|
Notes receivable |
0 |
|
Accounts
receivable |
6,630 |
|
Advances
to suppliers |
0 |
|
Other
receivable |
89 |
|
Inventory |
65,060 |
|
Non-current
assets within one year |
0 |
|
Other
current assets |
691 |
|
|
------------------ |
|
Current
assets |
125,170 |
|
Fixed
assets |
25,770 |
|
Construction
in progress |
0 |
|
Intangible
assets |
0 |
|
Long-term
investment |
0 |
|
Deferred
income tax assets |
0 |
|
Other
non-current assets |
66,120 |
|
|
------------------ |
|
Total
assets |
217,060 |
|
|
============= |
|
Short-term
loans |
40,000 |
|
Notes
payable |
0 |
|
Accounts
payable |
36,100 |
|
Welfares
payable |
0 |
|
Taxes
payable |
0 |
|
Advances
from clients |
0 |
|
Other
payable |
21,460 |
|
Other
current liabilities |
6,440 |
|
|
------------------ |
|
Current
liabilities |
104,000 |
|
Non-current
liabilities |
0 |
|
|
------------------ |
|
Total
liabilities |
104,000 |
|
Equities |
113,060 |
|
|
------------------ |
|
Total
liabilities & equities |
217,060 |
|
|
============= |
Income Statement
|
Unit:
CNY’000 |
As
of Dec. 31, 2012 |
|
Revenue |
203,440 |
|
Cost of sales |
123,740 |
|
Sales expense |
3,830 |
|
Management expense |
18,980 |
|
Finance expense |
1,570 |
|
Profit
before tax |
51,910 |
|
Less:
profit tax |
7,780 |
|
44,130 |
Important
Ratios
=============
|
|
As of
Dec. 31, 2012 |
|
*Current
ratio |
1.20 |
|
*Quick
ratio |
0.58 |
|
*Liabilities
to assets |
0.48 |
|
*Net
profit margin (%) |
21.69 |
|
*Return
on total assets (%) |
20.33 |
|
*Inventory
/ Revenue ×365 |
117 days |
|
*Accounts
receivable/ Revenue ×365 |
12
days |
|
*Revenue/Total
assets |
0.94 |
|
*Cost
of sales / Revenue |
0.61 |
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:
AVERAGE
l
The current ratio of SC is maintained
in a normal level.
l
SC’s quick ratio is maintained in a fair
level.
l
The inventory of SC appears fairly
large.
l
The accounts receivable of SC appears
average.
l
The short-term loans of SC appear
average.
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 fairly large amount of inventory may be a threat to
SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.44 |
|
|
1 |
Rs.81.33 |
|
Euro |
1 |
Rs.70.50 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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.