MIRA INFORM REPORT
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Report Date : |
20.05.2013 |
IDENTIFICATION DETAILS
|
Name : |
NINGBO HONGYU INDUSTRIAL CO., LTD. |
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Registered Office : |
No. 668 Fuchun River
Road, Beilun District, Ningbo City, Zhejiang, 315824 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
28.12.2003 |
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Com. Reg. No.: |
330206000104992 |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
Subject is mainly
engaged in researching, developing, manufacturing and selling auto shock absorbers and other key spare
parts of cars. |
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No. of Employees : |
324 |
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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
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 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.
Source
: CIA
Company Name and Address
NINGBO HONGYU INDUSTRIAL CO., LTD.
No. 668 fuchun river road, beilun district,
ningbo city,
zhejiang, 315824 PR CHINA
TEL: 86 (0) 574-86817923/86811166-6400 FAX: 86 (0) 574-86811166-6404
EXECUTIVE SUMMARY
INCORPORATION DATE :
DEC.
28, 2003
REGISTRATION NO. :
330206000104992
REGISTERED LEGAL FORM : ONE-PERSON LIMITED LIABILITY COMPANY
STAFF STRENGTH :
324
REGISTERED CAPITAL :
CNY 93,952,631
BUSINESS LINE :
R&D, MANUFACTURING, TRADING
TURNOVER :
CNY 109,870,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 85,590,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.1425= 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 Renminbi
SC was registered as a Chinese-foreign equity joint venture
enterprise at local Administration for Industry & Commerce (AIC - The
official body of issuing and renewing business license) on Dec. 28, 2003 and
then changed into the present ownership.
Company Status: One-person Limited
Liability Company Single person LLC refers to a
limited liability company set up by only one natural person or legal person
as the single shareholder of it. The minimum registered capital
of Single person LLC is CNY 100,000. The shareholder’s capital contributes,
as set out by the articles of associations should be a lump-sum payment in
full. One natural person can only
invest in and set up one limited liability company, which is not permitted
to invest in and set up a new Single person LLC. As to any one-person limited
liability company, the sole-investor nature of the natural person or legal
person shall be indicated in the registration documents of the company and
shall be indicated in the business license thereof as well. The regulation of Single person
LLC should be set up by the shareholder The regulation of Single person
LLC has no shareholder meeting.
SC’s registered
business scope includes researching, developing and manufacturing auto shock absorbers
and other key spare parts of cars; importing and exporting various goods and
technologies (excluding goods or technologies limited or forbidden by state).
SC is mainly
engaged in researching, developing, manufacturing and selling auto shock absorbers and other key spare
parts of cars.
Mr. Zheng Nianhui
is legal representative, chairman and general manager of SC at present.
SC is known
to have approx. 324 employees at present.
SC is currently operating at the above stated address, and this address houses its operating office and factory in the industrial zone of Ningbo. Our checks reveal that SC owns the premise with about 73,000 square meters.
www.addchina.com
The web belongs to SC’s parent ADD Industry (Zhejiang) Corporation Limited, but
it could not be landed at present.
Changes of its
registered information are as follows:
|
Date of change |
Item |
Before the
change |
After the change |
|
Unknown |
Registered Legal Form |
Chinese-foreign equity joint venture
enterprise |
Present one |
Tax Registration Certificate No.: 33020675628252X
For the past two years there is no record of litigation.
MAIN
SHAREHOLDERS:
Name %
of Shareholding
ADD Industry (Zhejiang) Corporation Limited 100
Registration No.: 331021000007607
Incorporation Date: Aug. 20, 1998
Registered Capital: CNY 80,000,000
Registered legal form: Shares Limited
Company
Legal
Representative: Mr. Zheng Nianhui
Website: www.addchina.com (it could not open at present)
Tel: 86 (0) 576-87278888
Fax: 86(0) 576-87278887
l
Legal Representative, Chairman and General Manager:
Mr. Zheng Nianhui is currently responsible for the overall
management of SC.
Working Experience(s):
At present Working in SC as legal representative,
chairman and general manager.
Also working in ADD Industry (Zhejiang) Corporation
Limited, Taizhou Jiayu Import & Export Co., Ltd. and Zhejiang Jiayu
Industrial Co., Ltd. as legal representative
Note: the given contact person Zhang Ling
is no longer working in the subject company.
SC is mainly
engaged in researching, developing, manufacturing and selling auto shock absorbers and other key spare
parts of cars.
SC’s products mainly include: twin tubes shock
absorber, strut cartridge absorber, shock
absorber with spring seat, gasbag shock absorber, etc.
SC sources its materials 100% from domestic
market. SC sells 75% of its products in domestic market, and 25% to overseas
market, mainly to East Asia and Africa.
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.
Note: SC’s management declined to release
its major clients and suppliers.
Zhejiang Jiayu Industrial Co., Ltd. (literal translation)
======================================
Registration No.: 330600400000038
Incorporation Date: Sep. 26, 2005
Registered Capital: CNY 91,053,956
Registered legal form: One-person Limited
Liability Company
Legal
Representative: Mr. Zheng Nianhui
Taizhou Jiayu Import & Export Co., Ltd. (literal
translation)
======================================
Registration No.: 331021000045559
Incorporation Date: Feb. 13, 2009
Registered Capital: CNY 5,000,000
Registered legal form: One-person Limited
Liability Company
Legal Representative: Mr. Zheng Nianhui
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.
SC declined to
release its banking details.
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31, 2012 |
as of Dec. 31, 2011 |
|
Cash & bank |
8,440 |
210 |
|
Inventory |
9,780 |
16,210 |
|
Accounts
receivable |
14,800 |
12,200 |
|
Short-term
investment |
0 |
0 |
|
Dividends
receivable |
0 |
0 |
|
Advances to
suppliers |
310 |
1,880 |
|
Notes receivable |
0 |
0 |
|
Other
receivables |
140 |
80 |
|
Other current
assets |
400 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
33,870 |
30,580 |
|
Fixed assets net
value |
92,500 |
87,190 |
|
Long term
investment |
0 |
0 |
|
Projects under
construction |
3,350 |
3,380 |
|
Intangible
assets |
7,190 |
7,400 |
|
Deferred tax
assets |
2,310 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
139,220 |
128,550 |
|
|
============= |
============= |
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Short loans |
0 |
0 |
|
Accounts payable |
15,250 |
18,040 |
|
Advances from
clients |
490 |
100 |
|
Notes payable |
13,570 |
0 |
|
Accrued payroll |
1,930 |
1,090 |
|
Taxes payable |
370 |
-3,870 |
|
Other accounts
payable |
22,020 |
30,490 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
53,630 |
45,850 |
|
Long term
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
53,630 |
45,850 |
|
Equities |
85,590 |
82,700 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
139,220 |
128,550 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31,
2012 |
as of Dec. 31,
2011 |
|
Turnover |
109,870 |
46,840 |
|
Cost of goods sold |
99,280 |
43,910 |
|
Taxes and additional of main operation |
50 |
0 |
|
Sales expense |
960 |
250 |
|
Management expense |
8,480 |
6,690 |
|
Finance expense |
130 |
0 |
|
Non-operating
income |
10 |
0 |
|
Non-operating expense |
170 |
0 |
|
Asset impairment loss |
240 |
810 |
|
Profit before
tax |
580 |
-4,820 |
|
Less: profit tax |
-2,320 |
0 |
|
Profits |
2,900 |
-4,820 |
Important Ratios
=============
|
|
as
of Dec. 31, 2012 |
as
of Dec. 31, 2011 |
|
*Current ratio |
0.63 |
0.67 |
|
*Quick ratio |
0.45 |
0.31 |
|
*Liabilities
to assets |
0.39 |
0.36 |
|
*Net profit
margin (%) |
2.64 |
-10.29 |
|
*Return on total
assets (%) |
2.08 |
-3.75 |
|
*Inventory
/Turnover ×365 |
32 days |
126 days |
|
*Accounts
receivable/Turnover ×365 |
49 days |
95 days |
|
*Turnover/Total
assets |
0.79 |
0.36 |
|
* Cost of
goods sold/Turnover |
0.90 |
0.94 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears average in 2011 and
fairly good in 2012.
l
SC’s net profit margin is fair in 2011 and average
in 2012.
l
SC’s return on total assets is fair in 2011 and
average in 2012.
l
SC’s cost of goods sold is average in 2012,
comparing with its turnover in both years.
LIQUIDITY: FAIR
l
The current ratio of SC is fair in both years.
l
SC’s quick ratio is fair in both years.
l
SC’s inventory is fairly large in 2011 and average
in 2012.
l
The accounts receivable of SC appears average in
both years.
l
SC has no short-term loan in both years.
l
SC’s turnover is in a fair level, comparing with
the size of its total assets in both years.
LEVERAGE: AVERAGE
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.
SC is considered medium-sized in its line with fairly stable financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.89 |
|
|
1 |
Rs.83.66 |
|
Euro |
1 |
Rs.70.58 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIT |
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.