MIRA INFORM REPORT
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Report Date : |
03.07.2014 |
IDENTIFICATION DETAILS
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Name : |
Festo Production
Ltd. |
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Registered Office : |
No. 1617 Fenghuang
Road, High-Tech Zone, Jinan, Shandong
Province, 250101 PR |
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Country : |
China |
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Date of Incorporation : |
10.11.2004 |
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Com. Reg. No.: |
370000400003799 |
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Legal Form : |
Wholly Foreign Owned Enterprise |
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Line of Business : |
Design, processing, production and sale of low-power pneumatic
control valves and industrial automation products, systems, auxiliary
equipment and spare parts, provide technical training and after-sales
service; engage in these products wholesale, import and export, commission
agency (excluding auction), and to provide technical support and technical
consulting services for Festo Group's products |
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No. of Employees |
800 |
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 : |
Unknown |
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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 31, 2014
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Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
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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 Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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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, 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 and address
Festo Production Ltd.
no. 1617 fenghuang
road, High-tech Zone, jinan,
shandong PROVINCE,
250101 PR CHINA
TEL: 86 (0) 531-82379001/82379051 FAX: 86 (0) 531-82379007
EXECUTIVE
SUMMARY
INCORPORATION DATE : NOV. 10, 2004
REGISTRATION NO. : 370000400003799
REGISTERED LEGAL FORM
: WHOLLY FOREIGN OWNED ENTERPRISE
CHIEF EXECUTIVE : MR. Claus Jessen (CHAIRMAN)
STAFF STRENGTH : 800
REGISTERED CAPITAL : cny 253,000,000
BUSINESS LINE : Manufacturing &
SELLING
TURNOVER : N/A
EQUITIES : N/A
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : N/A
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.20 = 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 wholly foreign owned enterprise at provincial Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Nov. 10, 2004.
Company Status: Wholly foreign-owned enterprise This form of business in PR
China is defined as a legal person. It is a limited co. established within
the territories of PR China with capital provided totally by the foreign
investors. More than one foreign investor may jointly invest in a wholly foreign-owned
enterprise. The investing party/parties solely exercise management, reap
profit and bear risks and liabilities by themselves. This form of companies
usually have a limited duration is extendible upon approval of Examination
and Approval Authorities.
SC’s registered business scope includes design, processing, production and sale of low-power pneumatic control valves and industrial automation products, systems, auxiliary equipment and spare parts, provide technical training and after-sales service; engage in these products wholesale, import and export, commission agency (excluding auction), and to provide technical support and technical consulting services for Festo Group's products (not involving state trading commodities, goods involving quota license management, in accordance with relevant state regulations).
SC is mainly engaged in manufacturing and selling pneumatics components.
Mr. Claus Jessen is the legal representative and chairman of SC at present.
SC is known to have approx. 800 employees at present.
SC is currently operating at the above stated address, and this address houses its operating office and factory in the high-tech zone of Jinan. Our checks reveal that SC owns the total premise about 24,000 square meters.
SC is not known to have any websites at present.
Changes of its
registered information are as follows:
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Date of change |
Item |
Before the change |
After the change |
|
2008 |
Registered Capital |
CNY 60,000,000 |
CNY 120,000,000 |
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Unspecified |
Registered Capital |
CNY 120,000,000 |
Present amount |
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Company Name |
Jinan JPC Pneumatics Ltd. |
Present one |
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Legal Rep. |
Thomas Rubbe |
Present one |
Subject passed the annual inspection of 2012 with Administration for Industry & Commerce.
Organization Code: 769714467
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name % of Shareholding
Festo AG & Co. KG (Germany) 100
=======================
Web: http://www.festo.com
E-mail: infoservice@festo.com
Tel.: ++49 (0) 711/347-0
Fax: ++49 (0) 711/347-21 44
Legal Representative
and Chairman:
Mr. Claus Jessen, 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 Festo AG & Co. KG (Germany) as director and in Festo China Production Co., Ltd. as legal representative.
*Officials:
=======
Name Title
Christian Leonhard Director
Zhou Hong Director
Michael Rainer. Zurn Supervisor
SC is mainly engaged in manufacturing and selling pneumatics components.
SC’s products mainly include: valves, cylinder and magnet switch.
SC sources its materials 90% from domestic market, and 10% from the overseas market, mainly European countries. SC sells 95% of its products in domestic market, and 5% to the overseas market, mainly American and European countries.
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 and Credit of 30-60 days.
Note: SC’s management declined to release its major clients and suppliers.
Festo China Production Co., Ltd.
======================
Registration No.: 310115400158794
Incorporation Date:
Chairman: Claus Jessen
Tel: 86 (0) 21-58586611
Festo (China) Ltd.
====================
Registration No.: 310115400016626
Incorporation Date:
Chairman: Dr. Wilfried Karl Stoll
Web: http://www.festo.com.cn/cms/zh-cn_cn/index.htm
E-mail: Info_cn@cn.festo.com
Tel.: 021-60815100
Fax: 021-58540300
Festo (Singapore) Ltd.
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.
Bank of China High-tech Zone Sub-branch
AC#：N/A
Relationship: Normal.
SC’s management declined to release any financial information.
SC is considered medium-sized in its line with favorable background and 10 years development history. Taking into consideration of SC’s market conditions and development history, we would rate SC as an average credit risk company. Credit up to moderate amount may be considered.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.59.97 |
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1 |
Rs.102.90 |
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Euro |
1 |
Rs.82.02 |
INFORMATION DETAILS
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Analysis Done by
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SUM |
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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.