MIRA INFORM REPORT
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Report Date : |
23.03.2013 |
IDENTIFICATION DETAILS
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Name : |
Yangzhou
Haixin Textile Machinery CO., LTD. |
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Registered Office : |
No. 235, West Huayang Road, Chahe Town, Yangzhou City,
Jiangsu Province, 225000 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
10.07.2001 |
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Com. Reg. No.: |
321027000052606 |
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Legal Form : |
Limited Liabilities Co. |
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Line of Business : |
Engaged in manufacturing and selling fishing nets
machinery |
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No. of Employees : |
98 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Small company |
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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 (31.03.2012) |
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 and address
Yangzhou Haixin Textile Machinery
CO., LTD.
NO. 235, WEST HUAYANG ROAD, CHAHE TOWN, YANGZHOU CITY,
JIANGSU PROVINCE, 225000 PR CHINA
TEL: 86 (0) 514-87783720/ 87783722/87842168 FAX: 86 (0) 514-87783721
EXECUTIVE SUMMARY
INCORPORATION DATE : JULY 10, 2001
REGISTRATION NO. : 321027000052606
REGISTERED LEGAL FORM :
Limited liabilities co.
STAFF STRENGTH : 98
REGISTERED CAPITAL :
CNY 6,000,000
BUSINESS LINE : MANUFACTURING
TURNOVER : CNY 24,150,000 (AS OF
DEC. 31, 2011)
EQUITIES : CNY 6,780,000 (AS OF
DEC. 31, 2011)
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY 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 Ren Min Bi
SC was registered as a
Limited liabilities co. enterprise at local Administration for Industry &
Commerce (AIC-The official body of issuing and renewing business license) on
July 10, 2001.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders
contribute its registered capital jointly. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to extent of its total assets. The characteristics of this form
of co. are as follows: Upon
the establishment of the co., an investment certificate is issued to the
each of shareholders. The board of directors is
comprised of three to thirteen members. The minimum registered capital
for a co. is CNY 30,000. Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology. Cash contributed by all
shareholders must account for at least 30% of the registered capital. Existing shareholders have
pre-exemption right to purchase shares of the co. offered for sale by the
other shareholders and to subscribe for the newly increased registered
capital of the co.
SC’s registered business scope includes general business
scope: processing, manufacturing and selling fishing nets machinery, warp
knitting machinery, textile machinery, plastics machinery, powder metallurgy
machinery, extrusion machinery, drilling machinery and other machinery,
machinery parts; manufacturing and selling powder metallurgy products, power
tools, magnetic materials, castings, ceramics; manufacturing and selling
fishing nets, nylon, polyester and other synthetic materials; importing and
exporting goods and technologies (excluding the items prohibited by the
state)
SC is mainly
engaged in manufacturing and selling fishing nets machinery.
Mr.
Pan Xueren is legal representative and chairman of SC at present.
SC is
known to have approx. 98 employees
at present.
SC is currently operating at the above stated address, and this
address houses its operating office and factory in Yangzhou. Our checks reveal
that SC owns the total premise about 30,000 square meters.
http://www.chinahaixin.net/ The design is professional and the content is
well organized. At present it is in Chinese and English versions.
E-mail: lcp@hailimachine.com
SC has got the certificate of ISO 9001.
Etc.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Pan Xueren 33.34
ID# 321027640906271
Zeng Tongxiang 33.33
ID# 321027650328361
Luan Changping 33.33
ID# 32102719651028211X
l Legal
Representative and Chairman:
Mr. Pan Xueren, ID#
321027640906271, born in 1964, with junior college education. He is currently
responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as legal
representative and chairman.
l General
Manager:
Mr. Zeng Tongxiang, ID#
321027650328361, born in 1965, with junior college education. He is currently
responsible for the daily management of SC.
Working Experience(s):
At present Working in SC as general
manager.
l Supervisor:
Luan Changping ID#
32102719651028211X
SC is
mainly engaged in manufacturing and selling fishing nets machinery.
SC’s products
mainly include: netting machine; twisting machine; extruder; spare parts;
dehydrator; dyeing machine; selvage threading machine; fishing net packing
machine; water treatment machine; yarn tester machine; net mending machine;
etc.
SC
sources its materials 100% from domestic market. SC sells 100% of its products
in domestic market.
The buying terms of SC include Check, T/T and Credit of
30-60 days. The payment terms of SC include Check, T/T and Credit of 30-60
days.
Note: SC’s management declined to release its major suppliers and
clients.
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: 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.
Agricultural Bank of China Yangzhou Hanjiang Industrial Park
Sub-branch
AC#：154801040004900
Relationship:
Normal.
Balance
Sheet
Unit:
CNY’000
|
|
as of Dec. 31, 2011 |
|
Cash
& bank |
1,580 |
|
Notes
receivable |
0 |
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Inventory |
19,700 |
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Accounts
receivable |
1,510 |
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Advances
to supplies |
170 |
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Other
receivables |
60 |
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Other
current assets |
0 |
|
|
------------------ |
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Current
assets |
23,020 |
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Long-term
investments |
0 |
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Fixed
assets net value |
2,260 |
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Projects
under construction |
0 |
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Intangible
assets |
1,230 |
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Other
assets |
0 |
|
|
------------------ |
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Total
assets |
26,510 |
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|
============= |
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Short
loans |
5,000 |
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Notes
payable |
0 |
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Accounts
payable |
3,820 |
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Advances
from customers |
2,500 |
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Accrued
Payroll |
580 |
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Taxes
payable |
190 |
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Other
payable |
340 |
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Other
accounts payable |
7,000 |
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Other
current liabilities |
0 |
|
|
----------------- |
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Current
liabilities |
19,430 |
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Long
term liabilities |
300 |
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|
------------------ |
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Total
liabilities |
19,730 |
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Shareholders
equities |
6,780 |
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|
------------------ |
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Total
liabilities & equities |
26,510 |
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|
============= |
Income
Statement
Unit:
CNY’000
|
|
as of Dec. 31, 2011 |
|
Turnover |
24,150 |
|
Cost of goods sold |
21,750 |
|
Taxes and additional of main
operation |
90 |
|
Income
form other operation |
420 |
|
Sales expense |
800 |
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Management expense |
1,370 |
|
Finance expense |
300 |
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Non-operating
income |
0 |
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Non-operating expense |
0 |
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Profit
before tax |
260 |
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Less:
profit tax |
70 |
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Net
profit |
190 |
Important
Ratios
=============
|
|
as of Dec. 31,
2011 |
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*Current ratio |
1.18 |
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*Quick ratio |
0.17 |
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*Liabilities to assets |
0.74 |
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*Net profit margin (%) |
0.79 |
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*Return on total assets (%) |
0.72 |
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*Inventory /Turnover ×365 |
298 days |
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*Accounts receivable/Turnover ×365 |
23 days |
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*Turnover/Total assets |
0.91 |
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* Cost of goods sold/Turnover |
0.90 |
PROFITABILITY:
AVERAGE
l The
turnover of SC appears average.
l SC’s
net profit margin appears average.
l SC’s
return on total assets is average.
l
SC’s cost of goods sold is average, comparing
with its turnover.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained
in a normal level.
l
SC’s quick ratio is maintained in a
poor level.
l
The inventory of SC appears large.
l
The accounts receivable of SC appears
average.
l
The short-term loan of SC appears
fairly large.
l
SC’s turnover 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.
SC is considered small-sized in its line with fairly stable
financial conditions. The large amount of inventory and short-term loan could
be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.33 |
|
|
1 |
Rs.82.55 |
|
Euro |
1 |
Rs.70.10 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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 |
|
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 |
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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 |
|
<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.