MIRA INFORM REPORT
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Report Date : |
25.09.2013 |
IDENTIFICATION DETAILS
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Name : |
LINYI DAPENG HARDWARE & ABRASIVES CO., LTD. |
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Registered Office : |
Zaogoutou Industrial Park, Linyi Shandong Province 276000 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
18.03.2002 |
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Com. Reg. No.: |
371302228006976 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in manufacturing and selling hardware abrasives. |
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No. of Employees : |
27 |
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
|
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
LINYI DAPENG HARDWARE &
ABRASIVES CO., LTD.
ZAOGOUTOU INDUSTRIAL PARK, LINYI SHANDONG PROVINCE 276000 PR CHINA
TEL: 86 (0) 539-8119288/8116897/8632788
FAX: 86 (0) 539-8116366/8632755
EXECUTIVE SUMMARY
Date of Registration : March 18, 2002
REGISTRATION NO. : 371302228006976
LEGAL FORM : Limited liabilities company
CHIEF EXECUTIVE :
peng xiangdong (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : cny 500,000
staff :
27
BUSINESS CATEGORY : manufacturing
Revenue :
CNY 7,346,000 (AS OF DEC. 31,
2012)
EQUITIES :
CNY 727,000 (AS OF DEC. 31, 2012)
WEBSITE : www.dapengwujin.com
E-MAIL :
linyidapeng@yahoo.com.cn
PAYMENT :
AVERAGE
MARKET CONDITION : fair
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : ORDINARY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.12 = 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
***Note: SC is
also known as Linyi Dapeng Hardware Grinding Tools Co., Ltd.
SC was established as a limited liabilities company of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.:
371302228006976 on March 18, 2002.
SC’s Organization Code Certificate No.:
73720739-9
SC’s Tax No.: 371302737207399
SC’s registered capital: cny 500,000
SC’s paid-in capital: cny 500,000
Registration Change Record:-
No significant changes of SC have been noted in
SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Peng Xiangdong |
70 |
|
Peng Xiaotong |
30 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Peng Xiangdong |
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General Manager |
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Supervisor |
Peng Xiaotong |
RECENT DEVELOPMENT
SC has passed the certifications of ISO 9001 Quality Management System
and Quality License for Export Products.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Peng Xiangdong 70
Peng Xiaotong 30
MANAGEMENT
Peng Xiangdong,
Legal Representative and Chairman
---------------------------------------------------------------------------------
Gender: M
Qualification: University
Working experience (s):
From 2002 to present, working in SC as legal representative and chairman
Cao Ying, General
Manager
----------------------------------------------
Gender: F
Qualification: University
Working experience (s):
At present, working in SC as general manager
Peng Xiaotong,
Supervisor
----------------------------------------------
Gender: M
Qualification: University
BUSINESS OPERATION
SC’s registered business scope includes manufacturing and
selling hardware abrasives.
SC is mainly engaged in manufacturing and selling hardware abrasives.
Brands: 
SC’s products mainly include:
High Speed Resin Abrasive Cutting Wheel
High-speed Resin Cymbals-shaped Grinding Wheel
SC sources its materials 100% from domestic market, mainly Shandong. SC
sells 60% of its products in domestic market, and 40% to overseas market,
mainly Korea, Asia, Europe and etc.
The buying terms of SC include T/T and Credit of 30-60 days. The payment
terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Local
Competitors:
====================
Linyi Jinsheng Abrasive & Grinder Co., Ltd.
Linyi Qiteng Silicon Carbide Abrasive & Grinder Co., Ltd.
Linyi Yingmai Tools Co., Ltd.
Staff &
Office:
--------------------------
SC is known to have approx. 27
staff at present.
SC rents an area as its operating office and factory of approx. 2,000
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:
Rural Cooperative Bank of Lanshan
AC#: 91602120020100027205
FINANCIALS
Balance Sheet
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Unit: CNY’000 |
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
296 |
1,015 |
2,720 |
|
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Accounts receivable |
596 |
157 |
179 |
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Advances to suppliers |
0 |
0 |
0 |
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Other receivable |
0 |
0 |
0 |
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Inventory |
1,200 |
981 |
722 |
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Non-current assets within one year |
0 |
0 |
0 |
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Other current assets |
8 |
0 |
0 |
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------------------ |
------------------ |
------------------ |
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Current assets |
2,100 |
2,153 |
3,621 |
|
Fixed assets |
1,455 |
1,355 |
2,455 |
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Construction in progress |
0 |
0 |
0 |
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Intangible assets |
0 |
0 |
0 |
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Long-term prepaid expenses |
0 |
0 |
0 |
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Deferred income tax assets |
0 |
0 |
0 |
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Other non-current assets |
0 |
0 |
0 |
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------------------ |
------------------ |
------------------ |
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Total assets |
3,555 |
3,508 |
6,076 |
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============= |
============= |
============= |
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Short-term loans |
2,960 |
2,969 |
2,969 |
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Notes payable |
0 |
0 |
0 |
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Accounts payable |
207 |
135 |
2,728 |
|
Wage payable |
52 |
21 |
8 |
|
Welfare payable |
45 |
36 |
-44 |
|
Taxes payable |
-199 |
-255 |
-310 |
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Advances from clients |
0 |
0 |
0 |
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Other payable |
0 |
0 |
-2 |
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Other current liabilities |
5 |
0 |
0 |
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------------------ |
------------------ |
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Current liabilities |
3,070 |
2,906 |
5,349 |
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Non-current liabilities |
77 |
0 |
0 |
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------------------ |
------------------ |
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Total liabilities |
3,147 |
2,906 |
5,349 |
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Equities |
408 |
602 |
727 |
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------------------ |
------------------ |
------------------ |
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Total liabilities & equities |
3,555 |
3,508 |
6,076 |
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============= |
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Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
Revenue |
4,352 |
6,598 |
7,346 |
|
Cost of sales |
4,078 |
6,216 |
6,795 |
|
Sales expense |
0 |
0 |
0 |
|
Management expense |
188 |
183 |
282 |
|
Finance expense |
4 |
76 |
131 |
|
Profit before tax |
82 |
71 |
139 |
|
Less: profit tax |
0 |
0 |
0 |
|
82 |
71 |
139 |
Important Ratios
=============
|
|
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
*Current ratio |
0.68 |
0.74 |
0.68 |
|
*Quick ratio |
0.29 |
0.40 |
0.54 |
|
*Liabilities to assets |
0.89 |
0.83 |
0.88 |
|
*Net profit margin (%) |
1.88 |
1.08 |
1.89 |
|
*Return on total assets (%) |
2.31 |
2.02 |
2.29 |
|
*Inventory / Revenue ×365 |
101 days |
55 days |
36 days |
|
*Accounts receivable/ Revenue ×365 |
50 days |
9 days |
9 days |
|
* Revenue/Total assets |
1.22 |
1.88 |
1.21 |
|
* Cost of sales / Revenue |
0.94 |
0.94 |
0.92 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
The revenue of SC appears fair in its line, and it increased year by
year.
SC’s net profit margin is average in three years.
SC’s return on total assets is average in three years.
SC’s cost of goods sold is fairly high, comparing with its revenue.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a fair level.
SC’s quick ratio is maintained in a fair level.
The inventory of SC appears large.
The accounts receivable of SC is maintained in an average level.
The short-term loans of SC appear large.
SC’s revenue is in an average level, comparing with the size of its
total assets.
LEVERAGE: FAIR
The debt ratio of SC is fairly high.
The risk for SC to go bankrupt is above average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered small-sized in its line with fairly stable financial
conditions. The large amount of inventory & short-term loans may be a
threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.66 |
|
|
1 |
Rs.100.46 |
|
Euro |
1 |
Rs.84.59 |
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 |
|
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 |
|
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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.