MIRA INFORM REPORT
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Report Date : |
26.06.2014 |
IDENTIFICATION DETAILS
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Name : |
SHANDONG BIHAI MACHINERY CO., LTD. |
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Registered Office : |
North Of West 5th Road, Ju’nan Economic Development Zone, Linyi, Shandong Province, 276600 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
28.04.2003 |
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Com. Reg. No.: |
371300228033150 |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
Subject is engaged in manufacturing and selling machinery equipment.
products mainly include: aseptic carton filling machine, water treatment equipment,
juice production line, milk production line |
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No. of Employees : |
200 |
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
Shandong Bihai Machinery co., ltd.
North of west 5th
road, ju’nan economic development zone,
linyi, shandong PROVINCE, 276600 PR CHINA
TEL: 86 (0) 539-7866888/15715498799
FAX: 86 (0) 539-7868777
EXECUTIVE
SUMMARY
INCORPORATION DATE : April 28, 2003
REGISTRATION NO. : 371300228033150
REGISTERED LEGAL FORM : One-person Limited Liability
Company
CHIEF EXECUTIVE :
Ms. Li Shanhong (CHAIRMAN)
STAFF STRENGTH :
200
REGISTERED CAPITAL : CNY 5,000,000
BUSINESS LINE :
manufacturing and trading
TURNOVER :
CNY 58,070,000 (AS OF DEC. 31, 2013)
EQUITIES :
CNY 7,470,000 (AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.2341= 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 One-person Limited Liability Company at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license).
Company Status: One-person Limited Liability Company Single person LLC refers to a
limited liability company set up by only one natural person or legal person
as the single shareholder of it. The minimum registered capital
of Single person LLC is CNY100,000. The shareholder’s capital contributes,
as set out by the articles of associations should be a lump-sum payment in
full. One natural person can only
invest in and set up one limited liability company, which is not permitted
to invest in and set up a new Single person LLC. As to any one-person limited
liability company, the sole-investor nature of the natural person or legal
person shall be indicated in the registration documents of the company and
shall be indicated in the business license thereof as well. The regulation of Single person
LLC should be set up by the shareholder The regulation of Single person
LLC has no shareholder meeting.
SC’s registered business scope includes manufacturing and selling: water
treatment equipment, beverage equipment, bottling equipment, air cleaner,
sterilizer, renting equipment (with permit if needed); importing and exporting
goods and technologies (with permit if needed).
SC is mainly engaged in manufacturing and selling
machinery equipment.
Ms. Li Shanhong is legal representative, chairman and general manager of
SC at present.
SC is known to have approx. 200 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in the economic development zone of
Ju’nan County. Detailed premise information is unspecified.
www.gspak.com
The website is jointly owned with Shandong Bihai Packaging Materials Co., Ltd.
The design is professional and the content is well organized. At present the web site is in Chinese
version.
www.chinabihai.com
The website is jointly owned with Shandong Bihai Packaging Materials Co., Ltd.
The design is professional and the content is well organized. At present the
web site is in Chinese, English and other versions.
Email: chinabihai@chinabihai.com
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
Subject passed the annual inspection of 2012 with Administration for
Industry & Commerce.
Organization Code: 724259616
See below for SC as executive party (defendant).
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Executed Party |
SC |
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Court |
Ju’nan County People's Court |
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Date of Case |
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Case Number |
(2011) 00518 |
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Claim Amount |
RMB 250,000 |
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Case Status |
Complete |
Remark: Due to the lack of information, we are unable to provide the cause of
action, judgment or other information.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Li Shanhong 100
Legal
representative, Chairman and General Manager:
Ms. Li Shanhong is currently responsible for the overall management of
SC.
Working
Experience(s):
At present Working
in SC as legal representative, chairman and general manager
SC is mainly engaged in manufacturing and selling machinery equipment.
SC’s products mainly include: aseptic carton filling machine, water
treatment equipment, juice production line, milk production line
SC sources its materials 100% from domestic market. SC sells 60% of its
products in domestic market, and 40% of its products to overseas market
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’s management refused to release its major suppliers and
clients.
Shandong Bihai Packaging Materials Co., Ltd.
===========================
Reg. No.: 371300200006247
Legal representative: Li Shanjun
Incorporation date:
Add.: North of West 5th Road, Ju’nan Economic Development Zone, Linyi,
Shandong Province
Tel.: 0539-7866888
Web: www.gspak.com
/ www.chinabihai.com
Linyi
Yibeier Beverage Co., Ltd.
==============================
Reg. No.: 371327200001077
Legal representative: Xu Yonglei
Incorporation date:
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.
SC’s management refused to release its banking information.
Balance
Sheet
Unit: CNY’000
Income
Statement
Unit: CNY’000
Important
Ratios
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As of Dec. 31,
2013 |
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*Current ratio |
0.92 |
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*Quick ratio |
0.89 |
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*Liabilities to assets |
0.91 |
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*Net profit margin (%) |
5.01 |
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*Return on total assets (%) |
3.58 |
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*Inventory /Turnover ×365 |
10 days |
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*Accounts receivable/Turnover ×365 |
143 days |
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*Turnover/Total assets |
0.71 |
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* Cost of goods sold/Turnover |
0.81 |
PROFITABILITY:
AVERAGE
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The turnover of SC appears average in its line.
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SC’s net profit margin is fairly good.
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SC’s return on total assets is average.
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SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: FAIR
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The current ratio of SC is maintained in a fair
level.
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SC’s quick ratio is maintained in a normal level.
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The inventory of SC appears average in 2013.
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The accounts receivable of SC is fairly large in
2013
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SC’s short loan is large in 2013.
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SC’s turnover is in a fair level, comparing with
the size of its total assets.
LEVERAGE: FAIR
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The debt ratio of SC is high.
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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 short loan and accounts receivable would be the
threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.60.28 |
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1 |
Rs.102.28 |
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Euro |
1 |
s.82.05 |
INFORMATION DETAILS
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Analysis Done by
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SUM |
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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.