MIRA INFORM REPORT
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Report Date : |
22.03.2013 |
IDENTIFICATION DETAILS
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Name : |
CHANGSHU FMC TECHNOLOGIES ENERGY EQUIPMENT CO., LTD. |
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Registered Office : |
2# Road No. 1, Export Processing Zone, Changshu Jiangsu
Province 215513 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
26.04.2006 |
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Com. Reg. No.: |
320581400000007 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Manufacturing energy instruments, measure instruments and energy conveying equipment, etc. |
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No. of Employees : |
120 |
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 : |
Good |
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Payment Behaviour : |
Regular |
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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 (31.03.2011) |
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.
Source
: CIA
Company name and address
CHANGSHU FMC TECHNOLOGIES ENERGY EQUIPMENT CO., LTD.
2# ROAD NO. 1, EXPORT PROCESSING ZONE, CHANGSHU
JIANGSU PROVINCE 215513 PR CHINA
TEL: 86 (0) 512-52299803/52299006
FAX: 86 (0) 512-52297228
EXECUTIVE SUMMARY
Date of Registration : APRIL 26, 2006
REGISTRATION NO. : 320581400000007
LEGAL FORM : WHOLLY FOREIGN-OWNED enterprise
REGISTERED CAPITAL : USD 2,100,000
staff :
120
BUSINESS CATEGORY : manufacturing
Revenue :
CNY 105,760,000 (AS OF DEC. 31,
2011)
EQUITIES :
CNY 32,970,000 (AS OF DEC. 31,
2011)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.21 = 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
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.: 320581400000007
on April 26, 2006.
SC’s Organization Code Certificate No.:
78631920-7
SC’s Tax No.: 320581786319207
SC’s registered capital: USD 2,100,000
SC’s paid-in capital is USD 2,100,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Registered No. |
000001 |
320581400000007 |
|
Legal Representative |
Howard Girbach |
Landes Jonathan David |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
FMC Technologies Energy Holdings Limited
(Hong Kong) |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and
General Manager |
Landes Jonathan
David |
|
Director |
Lockhart Carl
Edward |
|
Barth Edward
Xavier |
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|
Kelly Constance
Marie |
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|
Kim Yoonjo Jo |
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Supervisor |
Zeng Jianhua |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
FMC Technologies
Energy Holdings Limited (Hong Kong) 100
--------------------------------
Registration No.: 1028230
Date of Registration: Mar. 3, 2006
Legal Form: Private
MANAGEMENT
Landes Jonathan
David, Legal Representative, Chairman and General Manager
-------------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Nationality: USA
Ø
Passport No.: USA212951436
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal
representative, chairman and general manager
Director
----------
Lockhart Carl Edward Passport No.: USA476164965
Barth Edward Xavier Passport No.: USA028369025
Kelly Constance Marie Passport No.: USA488933335
Kim Yoonjo Jo Passport No.: USA490458670
Supervisor
--------------
Zeng Jianhua ID# 362122197509020012
BUSINESS OPERATION
SC’s registered business scope includes manufacturing
test and measure equipments, fluid control devices, conveying equipment, related
products and parts; selling self-made products and supplying related
after-sales services and technology support; wholesaling, import, export and commission agency of the same type
of its products and other auxiliary services (operating specially regulated
items in accordance with related regulations).
SC is mainly
engaged in manufacturing energy instruments, measure instruments and energy
conveying equipment, etc.
Brand: FMC
SC’s products
mainly include: test and measure equipment, fluid control devices, conveying
equipment, energy instruments, etc.
SC sources its materials 30% from domestic market,
and 70% from overseas market. SC sells 100% of its products to overseas market.
The
import & export status of SC in 2011 is as follows,
|
Country |
Amount of
Exports (USD) |
Amount of Imports (USD) |
|
USA |
12,156,400 |
885,600 |
|
India |
346,400 |
49,100 |
|
Malaysia |
86,000 |
1,400 |
|
Chile |
335,100 |
-- |
|
Singapore |
3,510,600 |
-- |
|
Korea |
136,100 |
-- |
|
Hong Kong |
-- |
402,000 |
The buying terms
of SC include Check, T/T, L/C and Credit of 30-60 days. The payment terms of SC
include L/C and Credit of 30-60 days.
*Major Customer:
=============
Waldinger Corp
Staff & Office:
---------------------
SC is known
to have approx. 120 staff at
present.
SC rents an area
as its operating office & factory of approx. 11,000 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 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
Basic Bank:
Industrial and Commercial Bank of China Changshu Binjiang Sub-branch
AC#:
1102252309008707421
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
|
8,370 |
|
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Inventory |
23,460 |
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Notes receivable |
0 |
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Accounts receivable |
13,420 |
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Advances to suppliers |
2,650 |
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Other receivables |
1,230 |
|
Other current assets |
1,540 |
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|
------------------ |
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Current assets |
50,670 |
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Fixed assets |
5,490 |
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Long term investment |
0 |
|
Construction in progress |
190 |
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Intangible and other assets |
1,290 |
|
|
------------------ |
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Total assets |
57,640 |
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|
============= |
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Short-term loans |
0 |
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Accounts payable |
9,150 |
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Advances from clients |
10,240 |
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Taxes payable |
210 |
|
Other Accounts payable |
2,480 |
|
Other current liabilities |
2,590 |
|
|
------------------ |
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Current liabilities |
24,670 |
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Long term liabilities |
0 |
|
|
------------------ |
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Total liabilities |
24,670 |
|
Equities |
32,970 |
|
|
------------------ |
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Total liabilities & equities |
57,640 |
|
|
============= |
Income
Statement
|
Unit: CNY’000 |
As of Dec. 31, 2011 |
|
Revenue |
105,760 |
|
Cost
of sales |
82,500 |
|
Sales
expense |
1,870 |
|
Management expense |
9,030 |
|
Finance
expense |
2,370 |
|
Profit before tax |
9,980 |
|
Less: profit tax |
1,440 |
|
8,540 |
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
|
*Current ratio |
2.05 |
|
*Quick ratio |
1.10 |
|
*Liabilities
to assets |
0.43 |
|
*Net profit
margin (%) |
8.07 |
|
*Return on
total assets (%) |
14.82 |
|
*Inventory /
Revenue ×365 |
81 days |
|
*Accounts
receivable/ Revenue ×365 |
47 days |
|
*
Revenue/Total assets |
1.83 |
|
* Total
business cost / Revenue |
0.78 |
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: FAIRLY
GOOD
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 appears fairly large.
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. 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.54.28 |
|
|
1 |
Rs.82.06 |
|
Euro |
1 |
Rs.70.23 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
RATING EXPLANATIONS
|
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 |
|
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.