MIRA INFORM REPORT
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Report Date : |
28.10.2013 |
IDENTIFICATION DETAILS
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Name : |
QINGDAO TONGCHUN PETROLEUM
INSTRUMENT CO., LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
30.09.2013 |
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Date of Incorporation : |
26.07.2005 |
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Com. Reg. No.: |
370284228039850 |
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Legal Form : |
Limited Liabilities Co. |
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Line of Business : |
Subject is engaged in manufacturing and selling drilling fluid
analytical instruments. |
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No. of Employees : |
30 |
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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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 |
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.
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Source
: CIA |
company name and address
QINGDAO TONGCHUN PETROLEUM INSTRUMENT CO., LTD.
WANGTAI iNDUSTRIAL PARK, JIAONAN, QINGDAO,
SHANDONG PROVINCE, 266425 PR CHINA
TEL: 86 (0) 532-83136059/83131292 FAX: 86 (0)
532-83134957
EXECUTIVE SUMMARY
INCORPORATION DATE : july 26, 2005
REGISTRATION NO. : 370284228039850
REGISTERED LEGAL FORM : Limited
liabilities co.
CHIEF EXECUTIVE :
mr. cui zhaoxing (CHAIRMAN)
STAFF STRENGTH :
30
REGISTERED CAPITAL : cny 10,000,000
BUSINESS LINE :
manufacturing and TRADING
TURNOVER :
cny 4,860,000 (jan. 1 to sep. 30, 2013)
EQUITIES :
cny 10,610,000 (as of sep. 30, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : Fairly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.0865 = 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
Note: SC is also known as Qingdao Tongchun Oil Instrument Co., Ltd.
The given tel. no. “0086 0532
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 July 26, 2005.
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 items:
manufacturing and selling petroleum machinery and accessories, mud analytical instruments,
textile machinery and accessories, auto parts, industrial machinery, textile
electrical and electronic products, precision castings, importing and exporting
goods and technologies. (with permit if needed).
SC is mainly engaged in manufacturing and selling drilling fluid
analytical instruments.
Mr. Cui Zhaoxing is legal representative and chairman of SC at present.
SC is known to have approx. 30 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in the industrial park of Qingdao. Our
checks reveal that SC owns the total premise about 33,057 square meters.
http://www.tongchunsy.com
The design is professional and the content is well organized. At present it is
in Chinese and English versions.
E-mail: tchshiyou@163.com
No significant changes were found during our checks with the local
Administration for Industry and Commerce.
Honors:
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Cui Xuekang 45
Wang Zhibo 35
Cui Zhaoxing 18
Wang Fen 2
Legal Representative and Chairman:
Mr. Cui Zhaoxing, born in 1955, 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.
Also working in Qingdao Tongchun Electrical & Mechanical Technology
Co., Ltd. as legal representative.
General Manager:
Mr. Ma Shupeng is currently
responsible for the daily management of SC.
Working
Experience(s):
At present Working in SC as
general manager.
SC is mainly engaged in manufacturing and selling drilling fluid
analytical instruments.
Main Products:
Viscometer
Medium-pressure Water Loss Meter
High-temperature High-pressure
Wat
Liquid Densimeter
Solid Content Determination
Frictional Resistance Coefficient/ Lu
Plugging Materials Testing
Stirring / Fluid Preparing
Roller Furnace / Aging Kettle
Swell Capacity Test
Electrochemical Analytical Instrument
Air Source Device
SC sources its materials 100% from domestic market. SC sells 90% of its
products in domestic market, and 10% to overseas 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, L/C and Credit of 30-60 days.
Note: SC’s
management refused to release its main clients and suppliers.
Qingdao Tongchun Electrical & Mechanical Technology Co., Ltd.
===============================================
Incorporation date:
Registration no.: 370284228015291
Registered capital: CNY 5,000,000
Legal rep.: Cui Zhaoxing
Legal form: One-person Limited Liability Company
Web: http://www.chinatongchun.cn
E-mail: qdtongchun@163.com
Tel: 18561598812
Fax: 86-532-83134957
Qingdao Tongchun Precision Casting Co., Ltd.
=================================
Incorporation date:
Registration no.: 370284228002233
Registered capital: CNY 2,000,000
Legal rep.: Wang Zhibo
Legal form: Limited liabilities co.
Qingdao Xingze Electrical & Mechanical Technology Co., Ltd.
==============================================
Incorporation date:
Registration no.: 370284230002923
Registered capital: CNY 5,000,000
Legal rep.: Wang Fen
Legal form: Limited liabilities co.
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.
China Construction Bank Qingdao Development Zone Sub-branch
AC#：37101988110051003500
Relationship: Normal.
Balance Sheet
Unit: CNY’000
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as of Dec. 31, 2012 |
as of Sep. 30, 2013 |
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Cash & bank |
1,290 |
430 |
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Notes receivable |
110 |
10 |
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Inventory |
130 |
600 |
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Accounts receivable |
5,270 |
3,970 |
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Advances to suppliers |
0 |
0 |
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Other receivables |
3,330 |
4,840 |
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Other current assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
10,130 |
9,850 |
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Long-term investments |
0 |
0 |
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Fixed assets net value |
7,340 |
7,120 |
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Projects under construction |
0 |
0 |
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Intangible assets |
760 |
760 |
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Other assets |
0 |
0 |
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------------------ |
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Total assets |
18,230 |
17,730 |
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============= |
============= |
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Short loans |
0 |
0 |
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Notes payable |
0 |
0 |
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Accounts payable |
3,210 |
3,980 |
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Advances from customers |
0 |
0 |
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Accrued payroll |
60 |
90 |
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Taxes payable |
140 |
30 |
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Other accounts payable |
4,660 |
3,020 |
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Other current liabilities |
0 |
0 |
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Current liabilities |
8,070 |
7,120 |
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Long term liabilities |
0 |
0 |
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Total liabilities |
8,070 |
7,120 |
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Shareholders equities |
10,160 |
10,610 |
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Total liabilities & equities |
18,230 |
17,730 |
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Income Statement
Unit: CNY’000
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Jan. 1 to Sep. 30, 2013 |
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Turnover |
4,860 |
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Cost of goods sold |
3,940 |
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Taxes and additional of main operation |
70 |
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Sales expense |
80 |
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Management expense |
810 |
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Finance expense |
0 |
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Non-operating income |
10 |
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Non-operating expense |
0 |
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Profit before tax |
9,770 |
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Less: profit tax |
100 |
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Net profit |
-130 |
Important Ratios
=============
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as of Dec. 31,
2012 |
as of Sep. 30,
2013 |
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*Current ratio |
1.26 |
1.38 |
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*Quick ratio |
1.24 |
1.30 |
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*Liabilities to assets |
0.44 |
0.40 |
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*Net profit margin (%) |
/ |
-2.67 |
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*Return on total assets (%) |
/ |
-0.73 |
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*Inventory /Turnover ×365 |
/ |
/ |
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*Accounts receivable/Turnover ×365 |
/ |
/ |
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*Turnover/Total assets |
/ |
0.27 |
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* Cost of goods sold/Turnover |
/ |
0.81 |
PROFITABILITY:
FAIR
The turnover of SC appears average in its line.
SC’s net profit margin is fair.
SC’s return on total assets is fair.
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a normal level.
The inventory of SC is maintained in an average level.
The accounts receivable of SC is maintained in a fairly large level.
SC has no short-term loan in 2012.
SC’s turnover is in a poor level, comparing with the size of its total
assets.
LEVERAGE: AVERAGE
The debt ratio of SC is low.
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.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.63 |
|
|
1 |
Rs.99.94 |
|
Euro |
1 |
Rs.85.14 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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 |
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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.