MIRA INFORM REPORT
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Report Date : |
05.06.2014 |
IDENTIFICATION DETAILS
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Name : |
HANGZHOU PERMANENT MAGNET GROUP CO., LTD. |
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Registered Office : |
Permanent Magnet Industrial Zone, The South Beach Of Th 2nd Bridge Qianjiang River, Hangzhou, Zhejiang Province 311231 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
05.11.1996 |
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Com. Reg. No.: |
330181000398465 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in the manufacturing and processing permanent
magnet components, electric motors, instrument, electronics products and communication
machinery; selling metal materials; information technology consulting;
patented technology services; importing and exporting goods and technology. |
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No. of Employees : |
750 |
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 – 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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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately 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
HANGZHOU PERMANENT MAGNET GROUP
CO., LTD.
PERMANENT MAGNET INDUSTRIAL ZONE
THE SOUTH BEACH OF TH 2ND BRIDGE QIANJIANG RIVER
HANGZHOU, ZHEJIANG PROVINCE 311231 PR CHINA
TEL: 86 (0) 571-82696116/82875385/22681128
FAX: 86 (0) 571-82875782
EXECUTIVE
SUMMARY
Date of Registration : november 5, 1996
REGISTRATION NO. : 330181000398465
LEGAL FORM : Limited liabilities company
CHIEF EXECUTIVE :
JIA GUIYUAN (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : cny 50,000,000
staff :
750
BUSINESS CATEGORY : MANUFACTURING
& trading
Revenue :
CNY 335,950,000 (AS OF DEC. 31,
2013)
EQUITIES :
CNY 187,410,000 (AS OF DEC. 31, 2013)
WEBSITE : www.china-hpmg.com
E-MAIL : hpmg@xs.hz.zj.cn
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.25 = 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
SC was established as a limited liabilities company of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.:
330181000398465 on November 5, 1996.
SC’s Organization Code Certificate No.:
25570676-9
SC’s Tax No.: 330181255706769
SC’s registered capital: cny 50,000,000
SC’s paid-in capital: cny 50,000,000
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:-
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Name of Shareholder (s) |
% of Shareholding |
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Jia Guiyuan |
90 |
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Jia Yingyan |
10 |
SC’s Chief Executives:-
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Position |
Name |
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Legal Representative, Chairman and General Manager |
Jia Guiyuan |
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Supervisor |
Jia Yingyan |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Jia Guiyuan 90
Jia Yingyan 10
MANAGEMENT
Jia Guiyuan, Legal
Representative, Chairman and General Manager
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Gender: M
Working experience
(s):
At present, working in SC as legal representative, chairman and general
manager
Jia Yingyan, Supervisor
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Gender: F
BUSINESS OPERATION
SC’s registered business scope includes manufacturing and processing
permanent magnet components, electric motors, instrument, electronics products
and communication machinery; selling metal materials; information technology
consulting; patented technology services; importing and exporting goods and
technology.
SC is mainly engaged in manufacturing and selling permanent magnet
products.
SC’s products mainly include:
Alnico Magnets
NdFeB Magnets
Smco Magnets
Magnetic Assembly
PM Motor
Gear
The annual capacity of SC’s major products: (According to its website)
●Cast and sintered Alnico: 1800 tons annually, accounting to 20%
of the world total
●Sintered and bonded NdFeB: 1500 tons annually
●Sintered and bonded SmCo: 80 tons annually
●Die-casting damping magnetic system: 25 millions sets annually
●Suspension magnet assemblies: 6 million sets annually
●Permanent magnet motors: 1million annually
SC sources its materials 75% from domestic market, and 25% from the
overseas market, mainly European countries. SC sells 70% of its products in
domestic market, and 30% to the overseas market, mainly U.S.A. 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 T/T, L/C and Credit of 30-60 days.
*Major Clients*
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Magnet Applications Inc.
Kason Industries Inc.
Staff &
Office:
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SC is known to have approx. 750
staff at present.
SC rents an area as its operating office, but the detailed information
is unknown.
RELATED COMPANY
SC is known to
have the following subsidiaries at present,
Hangzhou Bulaidi Power Magnetic Co., Ltd.
Registration No.: 330181400004673
Date of Registration: March 27, 1997
Registered Capital: USD 1,880,000
Legal Representative: Liu Runbing
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:
Agricultural Bank of China Development Zone
Sub-branch
AC#: 082301040007489
FINANCIALS
Financial Summary
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Unit: CNY’000 |
As of Dec. 31, 2013 |
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Total assets |
803,990 |
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Total liabilities |
616,580 |
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Equities |
187,410 |
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Revenue |
335,950 |
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Profits |
8,280 |
Important Ratios
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As of Dec. 31,
2013 |
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*Liabilities to assets |
0.77 |
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*Net profit margin (%) |
2.46 |
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*Return on total assets (%) |
1.03 |
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*Revenue / Total assets |
0.42 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
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The revenue of SC appears fairly good in its line.
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SC’s net profit margin is average.
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SC’s return on total assets is average.
LIQUIDITY: FAIR
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SC’s revenue is in a fair level, comparing with the
size of its total assets.
LEVERAGE: AVERAGE
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The debt ratio of SC is average.
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The risk for SC to go bankrupt is average.
Overall financial condition
of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.59.34 |
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1 |
Rs.99.18 |
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Euro |
1 |
Rs.80.76 |
INFORMATION DETAILS
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Analysis Done by
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KAR |
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Report Prepared
by : |
NNA |
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.