MIRA INFORM REPORT
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Report Date : |
13.12.2014 |
IDENTIFICATION DETAILS
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Name : |
ZHENGZHOU XINGUANGSE REFRACTORY CO., LTD. |
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Registered Office : |
Songzhai Industrial Zone, Liuzhai Town, Xinmi, Zhengzhou, Henan Province, 452376 Pr |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
12.06.2003 |
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Com. Reg. No.: |
410100400005508 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture |
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Line of Business : |
· Engaged in manufacturing and selling Fused Zirconia Alumina refractory material products (with permit if needed). · Subject product ranges includes clay brick for glass kiln, magnesite brick for glass kiln, sillimanite brick for glass kiln, zircon brick for glass kiln, glass kiln assembly |
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No of Employees : |
157 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 – September 30, 2014
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Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
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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, growth of the
private sector, development of stock markets and a modern banking system, 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 considered important to "economic
security," explicitly looking to foster globally competitive industries.
After keeping its currency tightly linked to the US dollar for years, in July
2005 China 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 and
expanded the daily trading band within which the RMB is permitted to fluctuate.
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. Several factors are
converging to slow China's growth, including debt overhang from its
credit-fueled stimulus program, industrial overcapacity, inefficient allocation
of capital by state-owned banks, and the slow recovery of China's trading
partners. The government's 12th Five-Year Plan, adopted in March 2011 and
reiterated at the Communist Party's "Third Plenum" meeting in
November 2013, emphasizes continued economic reforms and the need to increase
domestic consumption in order to make the economy less dependent in the future
on fixed investments, exports, and heavy industry. 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.
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Source : CIA |
Company name & address
ZHENGZHOU XINGUANGSE
REFRACTORY CO., LTD.
SONGZHAI INDUSTRIAL ZONE, LIUZHAI TOWN, XINMI, ZHENGZHOU,
HENAN PROVINCE, 452376 PR CHINA
TEL: 86 (0) 371-63122379/63122376 FAX: 86 (0) 371-63122375
EXECUTIVE SUMMARY
INCORPORATION DATE : JUN.
12, 2003
REGISTRATION NO. :
410100400005508
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE
ENTERPRISE
CHIEF EXECUTIVE :
MR. SONG LINXIANG (CHAIRMAN)
STAFF STRENGTH : 157 (Approximately)
REGISTERED CAPITAL : USD 1,700,000
BUSINESS LINE :
MANUFACTURING & TRADING
TURNOVER :
CNY 61,628,000 (AS OF DEC. 31,
2013)
EQUITIES :
CNY 47,394,000 (AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY
6.1896= 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 Jun. 12, 2003.
Company Status: Chinese-Foreign Equity Joint Venture Enterprise This form of business in PR
China is defined as a legal person. It is a limited co. jointly invested by
one or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of
capital investment. The investing parties exercise business management,
share profits and bear all risks and liabilities of the co. together. The
equity joint venture law requires that foreign party contribute not less
than 25% of the registered capital, with no maximum. The investing parties
are free to agree on method of profit distribution and liabilities bearing
according to the proportion of capital investment. Each investing parties
contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has a
limited duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition
position in international market may extend beyond the 50 years limit.
SC’s registered
business scope includes manufacturing and selling Fused Zirconia Alumina
refractory material products (with permit if needed).
SC is mainly engaged in manufacturing and selling refractory material
products.
Mr.
Song Linxiang is legal representative, chairman and general manager of SC at present.
SC is known to have approx. 157 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
Zhengzhou. Our
checks reveal that SC owns the total premise about 20,000 square meters.
http://www.xinguangse.com/
The design is professional and the content is well organized. At present it is
in English, Chinese, Japanese, and other versions.
E-mail: info@chinasgs.cn
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the
change |
After the change |
|
2009-5 |
Registration No. |
001336 |
410100400005508 |
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name
Amount
(USD) % of Shareholding
P.T. Sibalec Co., Ltd. (
============================
Registration no.: 410100000040216
Legal representative: Song Linxiang
Tel: 86(0)371-63122377
Legal
representative, chairman and general manager:
Mr. Song Linxiang 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 Zhengzhou Kedaung Trading Co., Ltd. as legal representative.
Vice chairman:
Lin Baolang is currently responsible for the daily management of SC.
Working
Experience(s):
At present Working in SC as vice chairman
Director:
Liu Xifa
SC is mainly engaged
in manufacturing and selling refractory material products.
SC’s products
mainly include: clay brick for glass kiln, magnesite brick for glass kiln,
sillimanite brick for glass kiln, zircon brick for glass kiln, glass kiln
assembly
SC sources its materials 100% from domestic
market. SC sells 5% of its products in domestic market, and 95% to overseas
market.
TRADEMARKS & PATENTS
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Registration No. |
3807191 |
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Registration Date |
2012-2-28 |
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Trademark Design |
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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 refused
to release its major suppliers and customers.
SC is not known to have any subsidiary at present.
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.
Xinmi Liuzhai Rural
Credit Cooperative
AC#:
00000000792490058012
Relationship:
Balance Sheet
|
Unit: CNY’000 |
as of Dec. 31, 2012 |
as of Dec. 31, 2013 |
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Cash & bank |
1,764 |
1,495 |
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Inventory |
45,121 |
52,594 |
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Accounts
receivable |
11,489 |
12,350 |
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Advances to
suppliers |
11,838 |
4,451 |
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Other
receivables |
2,811 |
2,641 |
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Other current
assets |
509 |
0 |
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------------------ |
------------------ |
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Current assets |
73,532 |
73,531 |
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Fixed assets net
value |
16,697 |
22,372 |
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Projects under
construction |
0 |
0 |
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Long term
investment |
0 |
0 |
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Intangible
assets |
0 |
0 |
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Other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
90,229 |
95,903 |
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============= |
============= |
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Short loans |
18,000 |
19,000 |
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Accounts payable |
5,068 |
5,432 |
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Accounts from
customers |
15,373 |
17,780 |
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Other payable |
84 |
167 |
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Taxes payable |
672 |
204 |
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Other current
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Current
liabilities |
39,197 |
42,583 |
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Long term
accounts payable |
4,680 |
5,926 |
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------------------ |
------------------ |
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Total
liabilities |
43,877 |
48,509 |
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Equities |
46,352 |
47,394 |
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------------------ |
------------------ |
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Total
liabilities & equities |
90,229 |
95,903 |
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============= |
============= |
Income Statement
|
Unit: CNY’000 |
as
of Dec. 31, 2012 |
as
of Dec. 31, 2013 |
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Turnover |
74,743 |
61,628 |
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Cost of goods sold |
62,246 |
49,266 |
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Taxes and additional of main
operation |
295 |
231 |
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Sales expense |
3,436 |
3,606 |
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Management expense |
5,181 |
4,144 |
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Finance expense |
2,761 |
2,326 |
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Non-operation
income |
608 |
180 |
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Non-operation expense |
44 |
61 |
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Profit before
tax |
1,388 |
2,174 |
|
Less: profit tax |
347 |
543 |
|
Profits |
1,041 |
1,631 |
Important Ratios
=============
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|
as of Dec. 31, 2012 |
as of Dec. 31, 2013 |
|
*Current ratio |
1.88 |
1.73 |
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*Quick ratio |
0.72 |
0.49 |
|
*Liabilities
to assets |
0.49 |
0.51 |
|
*Net profit
margin (%) |
1.39 |
2.65 |
|
*Return on
total assets (%) |
1.15 |
1.70 |
|
*Inventory
/Turnover ×365 |
220 days |
311 days |
|
*Accounts
receivable/Turnover ×365 |
56
days |
73 days |
|
*Turnover/Total
assets |
0.83 |
0.64 |
|
* Cost of
goods sold/Turnover |
0.83 |
0.80 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in its line, but
declined in 2013.
l
SC’s net profit margin is average in
both years.
l
SC’s return on total assets is average
in both years.
l
SC’s cost of goods sold is average in both years,
comparing with its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a normal
level in both years.
l
SC’s quick ratio is maintained in a fair level in
both years.
l
The inventory of SC is large in both years.
l
The accounts receivable of SC is average in both
years.
l
The short term loan of SC is average in both years.
l
SC’s turnover is in a fair level, comparing with
the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average.
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. The large amount of inventory could be a threat to SC’s financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.44 |
|
UK Pound |
1 |
Rs.98.15 |
|
Euro |
1 |
Rs.77.38 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
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Report Prepared
by : |
MNL |
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 |
|
-- |
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.