MIRA INFORM REPORT
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Report Date : |
06.03.2014 |
IDENTIFICATION DETAILS
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Name : |
changzhou mingjie
building material |
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Registered Office : |
Equipment Manufacturing Co., Ltd. No. 32 Xinlong Road, Xinzha Town, Zhonglou District, Changzhou, Jiangsu Province 213012 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
15.10.2004 |
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Com. Reg. No.: |
320400000016667 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject includes manufacturing and selling cement
equipment, aerated-concrete complete equipment, and new environmental protection
brick-making equipment |
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No. of Employees : |
100 |
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, 2013
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Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
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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 |
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 |
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
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Source
: CIA |
Company
name and address
changzhou mingjie building material
equipment
manufacturing co., ltd.
no. 32 xinlong road,
xinzha town, ZHONGLOU DISTRICT,
changzhou, jiangsu
province 213012 PR CHINA
TEL: 86 (0)
519-68880156/68880185
FAX: 86 (0)
519-68880180
EXECUTIVE
SUMMARY
INCORPORATION DATE : oct. 15, 2004
REGISTRATION NO. : 320400000016667
REGISTERED LEGAL FORM
: Limited liabilities company
CHIEF EXECUTIVE : Mr. qiu mingjie (CHAIRMAN)
STAFF STRENGTH : 100
REGISTERED CAPITAL :
CNY 5,800,000
BUSINESS LINE : manufacturing and
trading
TURNOVER : CNY 68,310,000
(UNaudited, AS OF DEC. 31, 2013)
EQUITIES : CNY 13,140,000
(UNaudited, AS OF DEC. 31, 2013)
PAYMENT : AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : FAIRLY stable
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.1463 = 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 limited liabilities company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Oct. 15, 2004.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders contribute
its registered capital jointly. Shareholders bear limited liability to the
extent of shareholding, and the co. is liable for its debts only to extent
of its total assets. The characteristics of this form of co. are as
follows: Upon the establishment of the
co., an investment certificate is issued to the each of shareholders. The board of directors is
comprised of three to thirteen members. The minimum registered capital
for a co. is CNY 30,000. Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology. Cash contributed by all
shareholders must account for at least 30% of the registered capital. Existing shareholders have
pre-exemption right to purchase shares of the co. offered for sale by the
other shareholders and to subscribe for the newly increased registered
capital of the co.
SC’s registered business scope includes manufacturing and selling cement equipment, aerated-concrete complete equipment, and new environmental protection brick-making equipment; importing and exporting commodities & technology (excluding the items limited or prohibited by the state).
SC is mainly engaged in manufacturing and selling building material equipment.
Mr. Qiu Mingjie has been the legal representative, chairman and general manager of SC since 2004.
SC is known to have approx. 100 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 Changzhou. SC’s management declined to release detailed information of the premise.
http://aacchina.com The design is professional and the content is well organized. At present the web is in English version.
E-mail: 13775120393@163.com ; layerzhu@tom.com
No significant events or changes were found during our checks with the local AIC.
Subject passed the annual inspection of 2012 with Administration for Industry & Commerce.
Organization Code: 766535076
Certificate:
China Aerated Concrete Association
See below for SC as executive party (defendant).
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Executed Party |
Changzhou Mingjie Building Material Equipment Manufacturing Co., Ltd. |
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Court |
Changzhou City Zhonglou District People's Court |
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Date of Case |
Nov. 30, 2011 |
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Case Number |
(2011) 01046 |
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Claim Amount |
RMB 550,741 |
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Case Status |
Completed |
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Executed Party |
Changzhou Mingjie Building Material Equipment Manufacturing Co., Ltd. |
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Court |
Ningguo City People's Court |
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Date of Case |
Nov. 18, 2011 |
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Case Number |
(2011) 01302 |
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Claim Amount |
RMB 36,000 |
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Case Status |
Completed |
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
Qiu Mingjie (ID# 32040419781102XXXX) 80
Mao Zhongqiang 20
Legal Representative,
Chairman and General Manager:
Mr. Qiu Mingjie, ID# 32040419781102XXXX, born in 1978, with university education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 2004 to present Working in SC as legal representative,
chairman and general manager.
SC is mainly engaged in manufacturing and selling building material equipment.
SC’s products mainly include:
Autoclaved aerated concrete equipments
Raw material processing
Pouring and pre-curing
Batching and mixing
Tilting and cutting
Autoclave curing
Finished product out of autoclave
SC sources its materials 100% from domestic market, mainly Jiangsu. SC sells 70% of its products in domestic market, mainly Jiangsu and Shanghai, and 30% to overseas market, mainly Europe and America.
The buying terms of SC include Check, T/T, and Credit of 30-60 days. The payment terms of SC include Check, L/C, T/T and Credit of 30-60 days.
Note: SC declined to release its major customers and suppliers.
According to SC’s website:
Indian Office
Name: Priyesh Lunagaria
Tel: +91-9376456883
Duty: Officer
Email: mingjieindia@anjaliventuresltd.com ; aac@anjaliventuresltd.com
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.
Jiagnan Rural Commercial Bank Changzhou Xinzha Sub-branch
AC#：8983204010201201000034994
Relationship: Normal.
Balance Sheet
Unit: CNY’000
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as of Dec. 31, 2013 |
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Cash & bank |
2,750 |
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Notes receivable |
1,580 |
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Inventory |
12,860 |
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Accounts receivable |
5,700 |
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Advances to suppliers |
0 |
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Other receivables |
390 |
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Other current assets |
0 |
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------------------ |
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Current assets |
23,280 |
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Long-term investments |
0 |
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Fixed assets net value |
17,200 |
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Projects under construction |
2,580 |
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Intangible assets |
0 |
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Other assets |
0 |
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------------------ |
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Total assets |
43,060 |
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============= |
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Short loans |
8,290 |
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Notes payable |
7,800 |
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Accounts payable |
6,210 |
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Advances from customers |
0 |
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Accrued payroll |
830 |
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Taxes payable |
-1,880 |
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Other payable |
100 |
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Other accounts payable |
8,570 |
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Other current liabilities |
0 |
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----------------- |
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Current liabilities |
29,920 |
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Long term liabilities |
0 |
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------------------ |
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Total liabilities |
29,920 |
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Shareholders equities |
13,140 |
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------------------ |
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Total liabilities & equities |
43,060 |
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Income Statement
Unit: CNY’000
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as of Dec. 31, 2013 |
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Turnover |
68,310 |
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Cost of goods sold |
60,150 |
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Taxes and additional of main operation |
80 |
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Sales expense |
3,090 |
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Management expense |
2,830 |
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Finance expense |
1,010 |
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Non-operating income |
0 |
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Non-operating expense |
140 |
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Profit before tax |
1,010 |
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Less: profit tax |
380 |
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Net profit |
630 |
Note: The
Financial Report for Year 2013 hasn’t been audited.
Important Ratios
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As of Dec. 31, 2013 |
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*Current ratio |
0.78 |
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*Quick ratio |
0.35 |
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*Liabilities to assets |
0.69 |
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*Net profit margin (%) |
0.92 |
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*Return on total assets (%) |
1.46 |
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*Inventory /Turnover ×365 |
69 days |
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*Accounts receivable/Turnover ×365 |
31 days |
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*Turnover/Total assets |
1.59 |
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* Cost of goods sold/Turnover |
0.88 |
PROFITABILITY: AVERAGE
The turnover of SC appears average in its line.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a fair level.
SC’s quick ratio is maintained in a poor level.
The inventory of SC is maintained in a fairly large level.
The accounts receivable of SC is maintained in an average level.
SC’s short-term loan appears fairly large in 2013.
SC’s turnover is in an average level, comparing with the size of its total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average.
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 and short loans could be a 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.61.86 |
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1 |
Rs.103.06 |
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Euro |
1 |
Rs.84.92 |
INFORMATION DETAILS
|
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 |
-- |
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.