MIRA
INFORM REPORT
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Report Date : |
26.11.2013 |
IDENTIFICATION DETAILS
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Name : |
NINGBO
DONGHAI GROUP CORPORATION |
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Registered Office : |
Hengjie, West Suburb, Ningbo, Zhejiang Province 315181
PR |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
16.02.1993 |
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Com. Reg. No.: |
330212000068253 |
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Legal Form : |
Limited liabilities co. |
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Line of Business : |
Subject is engaged in trading instruments & meters |
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No. of Employees : |
1,000 (Including Subsidiaries) |
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 : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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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
Source
: CIA
Company name and address
NINGBO DONGHAI GROUP
CORPORATION
HENGJIE, WEST SUBURB,
NINGBO, ZHEJIANG PROVINCE 315181 PR CHINA
TEL: 86 (0) 574-88426871
FAX: 86 (0) 574-88280688
EXECUTIVE SUMMARY
INCORPORATION DATE : FEB. 16, 1993
REGISTRATION NO. : 330212000068253
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
CHIEF EXECUTIVE : MR. YUAN LIDING (CHAIRMAN)
STAFF STRENGTH : 1,000 (INCLUDING SUBSIDIARIES)
REGISTERED CAPITAL : CNY 30,330,000
BUSINESS LINE : tRADING
TURNOVER : CNY 195,890,000 (AS OF DEC.
31, 2012)
EQUITIES : cny 55,540,000 (AS OF DEC.
31, 2012)
PAYMENT : AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.09 = 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 Limited liabilities co. at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Feb. 16, 1993.
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 cargo service; contracting with foreign projects which equal to its strength, size, performance; implementation of the above dispatching service personnel overseas projects. Research and development, sales and technical services of water meter, power meter, gas meter, heat meter, water meter, IC card smart instrumentation, smart five meter remote meter reading system; timers, waterways programmable valves and fittings manufacturing, processing; import & export and self- agent of goods and technology, excluding those limited and prohibited by the State.
SC is mainly engaged in trading instruments & meters.
Mr. Yuan Liding is the legal representative, chairman and general manager of SC at present.
SC is known to have approx. 1,000 employees at present, including the ones in its subsidiaries.
SC is currently operating at the above stated address, and this address houses its operating office in the industrial zone of Ningbo. The detailed premise information is unknown.
http://www.dhchina.cn/ The website can't be opened at present.
Email: marketing@donghai.biz
SC has got ISO Certificate.
Tax Registration Certificate No.: 330227256037245
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Yuan Jian’gang 15
Yuan Liding 70
Yuan Xiaping 15
Legal Representative, Chairman and General Manager:
Mr. Yuan Liding with university education. He 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 Ningbo Dongzhou Copper Valve Co., Ltd. and Ningbo Huatao Instrument Co., Ltd. as legal representative, etc.
Supervisors:
Wang Dinghua
Xie Liangfu
SC is mainly engaged in trading instruments & meters.
The production business is operated by its subsidiaries at present.
SC’s products mainly include: water meter, gas meter, heat meter, etc.
SC sources its materials 90% from domestic market and 10% from overseas market. SC sells 50% of its products in domestic market and 50% to overseas market.
The buying terms of SC include Check, T/T, L/C, and Credit of 30-60 days. The payment terms of SC include Check, T/T, L/C, Check and Credit of 30-60 days.
Note: SC declined to
release its major suppliers and clients.
According to Internet resources:
Ningbo Donghai Instrument Waterway co., ltd.
======================
Registration No.: 330212000224485
Incorporation Date: 1997-09-17
Chairman: Yuan Xiaping
Ningbo Dongzhou Copper Valve Co., Ltd.
======================
Registration No.: 330212000108797
Incorporation Date: 1999-09-02
Chairman: Yuan Liding
Ningbo Huatao Instrument Co., Ltd.
======================
Registration No.: 330200400073770
Incorporation Date: 2003-10-27
Chairman: Yuan Liding
Etc.
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 bank details.
Financial Summary
Unit: CNY’000
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As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
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Total liabilities |
372,700 |
410,010 |
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Equities |
58,550 |
55,540 |
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-------------------- |
-------------------- |
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Total assets |
431,250 |
465,550 |
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============= |
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Turnover |
/ |
195,890 |
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Profit before tax |
/ |
-3,010 |
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Profits |
/ |
-3,010 |
Note: SC’s management refused to release the detail financial reports
for Yr 2011 & 2012.
Important Ratios
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As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
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*Liabilities to assets |
0.86 |
0.88 |
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*Net profit margin (%) |
/ |
-1.54 |
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*Return on total assets (%) |
/ |
-0.65 |
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*Turnover/Total assets |
/ |
0.42 |
PROFITABILITY: FAIR
The turnover of SC appears fairly good in its line in 2012.
SC’s net profit margin is fair in 2012.
SC’s return on total assets is fair in 2012.
SC’s turnover is fair in 2012, comparing with the size of its total assets.
LEVERAGE: FAIR
The debt ratio of SC is high.
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.62.58 |
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|
1 |
Rs.101.42 |
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Euro |
1 |
Rs.84.70 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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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 |
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<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.