MIRA
INFORM REPORT
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Report Date : |
19.03.2014 |
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Tel. No.: |
+86 532 85936982 |
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Fax No.: |
+86 532 85936928 |
IDENTIFICATION DETAILS
|
Name : |
FULLRUN
TYRE CORP., LTD. |
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Registered Office : |
11/F, Building B, Guohua Mansion, No. 2, Minjiang Road, Qingdao, Shandong Province 266071 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
03.06.2003 |
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Com. Reg. No.: |
370220228004580 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject includes international
trade, transit trade, trade and trade processing in the free
trade zone; operating and acting as an agent of importing and exporting
various kinds of commodities and technology. |
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No. of Employees : |
35 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 – December 01, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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
|
Source
: CIA |
Company name and address
FULLRUN TYRE CORP., LTD.
11/F,
Building B, Guohua Mansion, No. 2, Minjiang Road
Qingdao,
shandong PROVINCE 266071 PR CHINA
TEL: 86
(0) 532-85936982/85936931/85936932/85936928/85936917/85936966
FAX: 86
(0) 532-85936928/85936969/85936955/85936927
EXECUTIVE SUMMARY
Date of Registration : june 3, 2003
REGISTRATION NO. : 370220228004580
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL : cny 42,000,000
staff : 35
BUSINESS CATEGORY : trading
Revenue :
CNY 1,375,793,000 (AS OF DEC. 31,
2013)
EQUITIES :
CNY 186,362,000 (AS OF DEC. 31, 2013)
WEBSITE : www.fullruntyre.com
E-MAIL :
fullrun@fullruntyre.com
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.13 = 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.: 370220228004580 on June 3, 2003.
SC’s Organization Code Certificate No.:
75040731-X
SC’s Tax No.: 37029675040731X
SC’s registered capital: cny 42,000,000
SC’s paid-in capital: cny 42,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2012-2 |
Registered Capital |
CNY 30,000,000 |
cny 42,000,000 |
|
|
Shareholder
(s) (% of Shareholding) |
Liu Zijin 91.5% Liu Ning 5.0% Li Chuanlong 1.67% Liu Shaowei 1.50% Tang Li 0.33% |
Liu Zijin 93.17% Liu Ning 5.0% Liu Shaowei 1.50% Tang Li 0.33% |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Liu Zijin |
93.17 |
|
Liu Ning |
5.0 |
|
Liu Shaowei |
1.50 |
|
Tang Li |
0.33 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Liu Zijin |
|
Supervisor |
Deng Baogang |
RECENT DEVELOPMENT
SC has got ISO9001-2000 International Quality Standards Certification.
SHAREHOLDER CHART & BACKGROUND
Name % of
Shareholding
Liu Zijin
93.17
Liu Ning
5.0
Liu Shaowei
1.50
Tang Li
0.33
MANAGEMENT
Liu Zijin, Legal
Representative, Chairman and General Manager
------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø Qualification:
University
Ø Working experience
(s):
From 2010 to present, working in SC as legal
representative, chairman and general manager
Also as principal in Fullrun Tyre Corp., Ltd.
Shinan Office
Deng
Baogang, Supervisor
----------------------------------------------
Ø
Gender: M
BUSINESS OPERATION
SC’s registered business scope includes international
trade, transit trade, trade and trade processing in the free trade
zone; operating and acting as an agent of importing and exporting various kinds
of commodities and technology.
SC is
mainly engaged in selling tyre.
SC’s
products mainly include: light tyre, truck & bus tyre, agricultural tyre,
industrial tyre and solid tyre, etc.
SC sources its products 100% from domestic
market, mainly Shandong. SC sells 50% of its products in domestic market, and
50% to overseas market, mainly U.S.A., Europe, Mid East, Southeast Asia, etc.
The
buying terms of SC include Check, T/T and Credit of 30-60 days. The payment
terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Customers:
==============
Wheel and Tire
Distributors
Tire Universe
Wheel and Tire
Distributors
Starr Wheel Group
Staff & Office:
--------------------------
SC is
known to have approx. 35
staff at present.
SC owns an area as
its operating office, but the detailed information is unknown.
RELATED COMPANY
SC is known to have an
office at present.
n
Fullrun Tyre Corp., Ltd. Shinan Office
---------------------------------------------
Date of Registration: April 4, 2005
Registration No.: 370220329004446
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:
China CITIC Bank Qingdao Branch
AC#:
7371060182300043213
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
50,636 |
77,047 |
58,257 |
|
|
Notes receivable |
0 |
0 |
500 |
|
Accounts
receivable |
253,607 |
140,989 |
165,383 |
|
Advances to
suppliers |
0 |
0 |
0 |
|
Other receivable |
-5,785 |
1,032 |
331 |
|
Inventory |
159 |
739 |
23,865 |
|
Non-current
assets within one year |
0 |
0 |
0 |
|
Other current
assets |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Current assets |
298,617 |
219,807 |
248,336 |
|
Long-term
investment |
113,078 |
124,718 |
124,718 |
|
Fixed assets |
44,877 |
38,186 |
32,837 |
|
Construction in
progress |
0 |
0 |
0 |
|
Intangible
assets |
273 |
423 |
364 |
|
Long-term
prepaid expenses |
23 |
9 |
2 |
|
Deferred income
tax assets |
0 |
0 |
0 |
|
Other non-current
assets |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Total assets |
456,868 |
383,143 |
406,257 |
|
|
============= |
============= |
============= |
|
Short-term loans |
242,278 |
164,012 |
169,280 |
|
Notes payable |
9,000 |
7,500 |
1,686 |
|
Accounts payable |
80,922 |
46,192 |
46,447 |
|
Wages payable |
0 |
278 |
245 |
|
Taxes payable |
2,023 |
1,697 |
2,237 |
|
Advances from
clients |
0 |
0 |
0 |
|
Other payable |
1,225 |
20 |
0 |
|
Other current
liabilities |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Current
liabilities |
335,448 |
219,699 |
219,895 |
|
Non-current
liabilities |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Total
liabilities |
335,448 |
219,699 |
219,895 |
|
Equities |
121,420 |
163,444 |
186,362 |
|
|
------------------ |
------------------ |
------------------ |
|
Total
liabilities & equities |
456,868 |
383,143 |
406,257 |
|
|
============= |
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
|
Revenue |
2,251,422 |
1,356,444 |
1,375,793 |
|
Cost of sales |
2,172,752 |
1,282,564 |
1,295,020 |
|
Sales expense |
21,079 |
25,134 |
28,250 |
|
Management expense |
6,706 |
6,585 |
6,893 |
|
Finance expense |
17,451 |
14,352 |
15,450 |
|
Income from
investment |
4,881 |
-229 |
0 |
|
Non-business
income |
1,007 |
1,498 |
595 |
|
Non-business expenditure |
0 |
4,613 |
22 |
|
Profit before
tax |
39,318 |
24,395 |
30,597 |
|
Less: profit tax |
8,609 |
6,099 |
7,649 |
|
30,709 |
18,296 |
22,948 |
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
*Current ratio |
0.89 |
1.00 |
1.13 |
|
*Quick ratio |
0.89 |
1.00 |
1.02 |
|
*Liabilities to
assets |
0.73 |
0.57 |
0.54 |
|
*Net profit
margin (%) |
1.36 |
1.35 |
1.67 |
|
*Return on
total assets (%) |
6.72 |
4.78 |
5.65 |
|
*Inventory /
Revenue ×365 |
1 day |
1 day |
7 days |
|
*Accounts
receivable/ Revenue ×365 |
42 days |
38 days |
44 days |
|
*
Revenue/Total assets |
4.93 |
3.54 |
3.39 |
|
* Cost of
sales / Revenue |
0.97 |
0.95 |
0.94 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l The revenue of SC appears good in its line.
l SC’s net profit
margin is average in three years.
l SC’s return on
total assets is fairly good in three years.
l
SC’s cost of sales is fairly high, comparing with
its revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in a normal
level in 2013.
l
SC’s quick ratio is maintained in a fairly good
level in 2013.
l
The inventory of SC appears small.
l
The accounts receivable of SC is maintained in an
average level.
l
The short-term loans of SC appear average.
l
SC’s revenue is in an
average 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.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.95 |
|
|
1 |
Rs.101.37 |
|
Euro |
1 |
Rs.84.89 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
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.