MIRA INFORM REPORT

 

 

 

 

Report Date :

21.04.2014

 

IDENTIFICATION DETAILS

 

Name :

SHANDONG TONGDA TEXTILE MACHINERY (GROUP) LIMITED

 

 

Registered Office :

Room 304 Building 3 Publishing House, No. 182 Haier Road, Laoshan District, Qingdao, Shandong Province 266061 PR

 

 

Country :

China

 

 

Date of Incorporation :

02.06.2011

 

 

Legal Form :

Private Company

 

 

Line of Business :

Subject is engaged in exporting textile machinery.

 

 

No. of Employees :

Not Available

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Not Registered in China

Payment Behaviour :

Unknown

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 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

China

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

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 2013 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 consumption; (b) facilitating higher-wage job opportunities for the aspiring middle class, including rural migrants and increasing numbers of college graduates; (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. Debt overhang from its credit-fueled stimulus program in 2008-10, particularly among local governments, and soaring property prices challenge policy makers currently. Their efforts to cool a red-hot property market in 2011 appear to have curbed inflation, but contributed to slower GDP growth in 2012 and 2013. Slow recovery in Europe and other key export markets have also retarded growth. 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 fixed investments and exports in the future. However, China has made only marginal progress toward these rebalancing goals. The new government of President XI Jinping has signaled a greater willingness to undertake reforms that focus on China's long-term economic health, including giving the market a more decisive role in allocating resources.

 

Source : CIA

Company name and address

 

SHANDONG TONGDA TEXTILE MACHINERY (GROUP) LIMITED

ROOM 304 BUILDING 3 PUBLISHING HOUSE, NO. 182 HAIER ROAD

LAOSHAN DISTRICT, QINGDAO, SHANDONG PROVINCE 266061 PR CHINA

TEL: 86 (0) 532-68066288/18663901627

FAX: 86 (0) 532-68066288

 

 

NARRATIVE REPORT

 

This refers to a type of report whose format is different from that of a standard report. Such type of report is provided when:

 

Information obtained is insufficient for compiling a standard report.

The enquired co has been out of business or its business address has been untraceable.

 

It should be noted that the time and manpower spent on preparing such type of report might be greater than those on a standard report. On many occasions, the information in this type of report still indicates the current status of the enquired co. and serves as a useful reference to assess its credit standing.

------------------------------------------

Adopted abbreviations (as follows)

SC - Subject Company (the company inquired by you)

N/A – Not available

CNY – China Yuan Ren Min Bi

 

CHECK ON SC’S REGISTERED TELEPHONE LINE

 

According to the internet sources, we found SC’s telephone number (86 (0) 532-68066288).

 

The given mobile phone number (0086-18663601627) is wrong, and its correct number is as below,

 

Tel: 86 (0) 18663901627

 

When we dialed the above given number, a gentleman Mr. Zhao Wei answered the phone. He admitted the English name, and told us its Chinese name in translation is “山东同大纺机（集团）有限公司”, which is registered in Hong Kong, but mainly operates in Qingdao, Shandong Province, PRC China.

 

Mr. Zhao Wei introduced the below information,

 

SC is mainly engaged in exporting textile machinery.

 

SC’s products mainly include:

Blow Room

Carding Machine

Draw Frame

Roving Frame

Etc.

SC sources its products 100% from domestic market. SC sells 100% of its products to overseas market, mainly India, Mumbai, etc.

 

SC’s related companies,

Qingdao Haoyu International Trade Co., Ltd. (Trading Company)

Shandong Tongda Machinery Co., Ltd. (Factory)

 

 

SPOT VISIT

 

Room 304 Building 3 Publishing House, No. 182 Haier Road, Laoshan District, Qingdao, Shandong Province

 

Mr. Zhao Wei released both SC and its related company-Qingdao Haoyu International Trade Co., Ltd. locates in the above stated address.

 

The 1st (No. 100, Jingkou Road, Qingdao) is the registered address for Qingdao Haoyu International Trade Co., Ltd.

 

The 2nd given address (Tonga Industry Park, Tonga Road Changyi Wei Fang City, Shandong China) is the registered address for Shandong Tongda Machinery Co., Ltd.

 

 

REGISTRATION

 

During our check with Hong Kong Registry, we found the following registration about SC,

Company Name: Shandong Tongda Textile Machinery (Group) Limited

Company File No.: 1610790

Date of Registration: June 2, 2011

Legal Form: Private

Status: Live

 

A research was conducted with Qingdao & Weifang municipal State Administration of Industry & Commerce (SAIC-the official body of issuing and renewing business license), and we found the following registration information for SC’s related companies,

 

Company Name: Qingdao Haoyu International Trade Co., Ltd. (Trading Company)

Registration No.: 370213230054074

Date of Registration: September 2, 2011

Legal Form: One-person Limited Liabilities Company

Registered Capital: CNY 500,000

Legal Representative: Zhao Wei

Shareholder (s) (% of Shareholding)

Zhao Wei 100%

 

Company Name: Shandong Tongda Machinery Co., Ltd. (Factory)

Registration No.: 370786228002348

Date of Registration: March 19, 2002

Legal Form: One-person Limited Liabilities Company

Registered Capital: CNY 5,000,000

Legal Representative: Sun Juncheng

Shareholder (s) (% of Shareholding)

Shandong Tongda Group Co., Ltd.

100%

 

 

CONCLUSIONS

 

SC is considered small-sized in its line with 3 years operation history.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.38

UK Pound

1

Rs.101.63

Euro

1

Rs.83.57

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

NNA

 

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.