MIRA INFORM REPORT
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Report Date : |
20.03.2014 |
IDENTIFICATION DETAILS
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Name : |
FORMTEK MACHINERY
(BEIJING) CO., LTD. |
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Registered Office : |
Beiqijia High-Tech
Industry Park, Changping District, Beijing, 102209 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
26.08.2003 |
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Com. Reg. No.: |
110000410187395 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Subject is engaged in
manufacturing and selling of equipment of the metal forming and metal
processing. |
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No of Employees : |
40 |
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 |
|
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 |
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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.
|
Source
: CIA |
COMPANY
NAME & ADDRESS
Formtek Machinery (Beijing) Co., LTD.
Beiqijia High-Tech Industry Park,
ChangPing District, Beijing, 102209 PR CHINA
TEL: 86 (0) 10-89758065/89754564/89754574 FAX: 86 (0) 10-89751509
EXECUTIVE
SUMMARY
INCORPORATION DATE : aug. 26, 2003
REGISTRATION NO. : 110000410187395
REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED ENTERPRISE
STAFF STRENGTH :
40
REGISTERED CAPITAL : usd 885,000
BUSINESS LINE :
Manufacturing & SELLING
TURNOVER :
CNY 28,360,000 (UNAUDITED, AS OF DEC. 31, 2013)
EQUITIES :
CNY 36,880,000 (UNAUDITED, AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY good
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.19 = 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
%20CO%20,%20LTD%20%20-%20259015%2020-Mar-2014_files/image017.gif){kind=small}
Note: The given English name “Formtex” should
be “Formtek”.
SC was registered as a wholly foreign-owned
enterprise at local Administration for Industry & Commerce (AIC - The
official body of issuing and renewing business license) on Aug. 26, 2003.
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 permit business scope: production of metal forming,
manufacturing, processing used advanced equipment. General business scope:
development industrial software of metal forming, manufacturing, processing
used advanced equipment; provide technical advice, technical services of own
products; sales of self-made products. (with permit if needed)
SC is mainly
engaged in manufacturing and selling of equipment of the metal forming and
metal processing.
Mr.
Nicholas•Filler is legal representative and chairman of SC at present.
SC is known
to have approx. 40 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
Industry Park of Beijing. Detailed information of the premise is unspecified.
%20CO%20,%20LTD%20%20-%20259015%2020-Mar-2014_files/image018.gif){kind=small}
http://www.formtek.com.cn/
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
E-mail: formtek@formtek.com.cn
%20CO%20,%20LTD%20%20-%20259015%2020-Mar-2014_files/image019.gif){kind=small}
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: 753300614
Tax Registration Certificate No.: 110114753300614
%20CO%20,%20LTD%20%20-%20259015%2020-Mar-2014_files/image020.gif){kind=small}
For the past two years there is no record of litigation.
%20CO%20,%20LTD%20%20-%20259015%2020-Mar-2014_files/image021.gif){kind=small}
MAIN SHAREHOLDERS:
Name % of
Shareholding
Formtek Inc. (U.S.A.) 100
Add.:
4899 Commerce Parkway, Cleveland, OH 44128 USA
Tel: (800) 631-0520
(216) 292-4460
Fax:
(216) 292-2898
Email:
info@formtekinc.com
%20CO%20,%20LTD%20%20-%20259015%2020-Mar-2014_files/image022.gif){kind=small}
l Legal
Representative and Chairman:
Mr. Nicholas•Filler, American, he is currently responsible for the
overall management of SC.
Working Experience(s):
At
present Working in SC as legal
representative and chairman.
l General manager:
Mr. Li Yong, in his 50’s, he is currently responsible for the daily
management of SC.
Working Experience(s):
At present Working
in SC as general manager.
Also
working in Formtek Machinery (Beijing) Co., Ltd. Sales Branch as principal.
l Directors:
John Deere
Bruce Dewey
%20CO%20,%20LTD%20%20-%20259015%2020-Mar-2014_files/image023.gif){kind=small}
SC is mainly
engaged in manufacturing and selling of equipment of the metal forming and
metal processing.
SC’s products mainly include: pro-fabriduct line, econo-slear,
lockformer vulcan plasma cutting systems, and TDC
notcher, etc.
SC sources its materials 90% from domestic market
and 10% from overseas market. SC sells 10% of its products in domestic market,
and 90% to overseas market.
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.
%20CO%20,%20LTD%20%20-%20259015%2020-Mar-2014_files/image024.gif){kind=small}
Formtek
Machinery (Beijing) Co., Ltd. Sales Branch
==============================
Registration
No.: 110000450148557
Incorporation
Date: 2010-08-27
Principal:
Li Yong
According
to SC’s website,
FORMTEK
Maine
Add.:
Cooper-Weymouth, Peterson, Coilmate-Dickerman, Rowe and B&K 76 Hinckley Road
Clinton,
ME 04927 USA
Tel: (207) 426-2351
Fax: (207) 426-8868
FORMTEK
Cleveland
Add.:
Yoder, Dahlstrom and B&K, 4899 Commerce Parkway
Cleveland,
OH 44128 USA
Tel: (800) 631-0520
Fax: (216) 292-2898
Email:
yoder@formtekcleveland.com
The
Lockformer Company
Add.:
711 Ogden Ave. Lisle, IL 60532 USA
Tel: (630) 964-8000
Fax: (630) 964-5685
Email:
sales@lockformer.com
Etc.
%20CO%20,%20LTD%20%20-%20259015%2020-Mar-2014_files/image025.gif){kind=small}
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.
%20CO%20,%20LTD%20%20-%20259015%2020-Mar-2014_files/image026.gif){kind=small}
SC declined to
release its bank details.
%20CO%20,%20LTD%20%20-%20259015%2020-Mar-2014_files/image027.gif){kind=small}
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31, 2012 |
as of Dec. 31,
2013 |
|
Cash & bank |
44,150 |
9,880 |
|
Inventory |
12,260 |
14,010 |
|
Accounts
receivable |
3,930 |
13,130 |
|
Advances to
suppliers |
840 |
940 |
|
Other
receivables |
510 |
11,230 |
|
Dividends
receivable |
0 |
0 |
|
Other current
assets |
140 |
250 |
|
|
------------------ |
------------------ |
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Current assets |
61,830 |
49,440 |
|
Fixed assets net
value |
380 |
280 |
|
Projects under
construction |
0 |
0 |
|
Long term
investment |
0 |
0 |
|
Intangible
assets |
0 |
0 |
|
Other assets |
120 |
110 |
|
|
------------------ |
------------------ |
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Total assets |
62,330 |
49,830 |
|
|
============= |
============= |
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Short loans |
0 |
0 |
|
Accounts payable |
3,390 |
6,630 |
|
Other accounts
payable |
580 |
780 |
|
Notes payable |
0 |
0 |
|
Taxes payable |
0 |
0 |
|
Advances from
clients |
1,090 |
2,500 |
|
Accrued payroll |
1,170 |
1,330 |
|
Welfare payable |
300 |
380 |
|
Dividends payable |
0 |
0 |
|
Provision for
expenses |
1,170 |
990 |
|
Other payable |
1,750 |
340 |
|
Other current
liabilities |
10,480 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
19,930 |
12,950 |
|
Long term
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
19,930 |
12,950 |
|
Equities |
42,400 |
36,880 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
62,330 |
49,830 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31,
2013 |
|
Turnover |
28,360 |
|
Cost of goods
sold |
11,190 |
|
Taxes and
additional of main operation |
120 |
|
Sales expense |
3,640 |
|
Management expense |
7,240 |
|
Finance expense |
-840 |
|
Non-operating
income |
10 |
|
Non-operating expense |
0 |
|
Profit before
tax |
49,720 |
|
Less: profit tax |
1,050 |
|
Profits |
5,970 |
Note: The financial reports for Yr2013 have not been audited.
Important Ratios
=============
|
|
as
of Dec. 31, 2012 |
as
of Dec. 31, 2013 |
|
*Current ratio |
3.10 |
3.82 |
|
*Quick ratio |
2.49 |
2.74 |
|
*Liabilities
to assets |
0.32 |
0.26 |
|
*Net profit
margin (%) |
/ |
21.05 |
|
*Return on
total assets (%) |
/ |
11.98 |
|
*Inventory
/Turnover ×365 |
/ |
181 days |
|
*Accounts
receivable/Turnover ×365 |
/ |
169 days |
|
*Turnover/Total
assets |
/ |
0.57 |
|
* Cost of
goods sold/Turnover |
/ |
0.39 |
%20CO%20,%20LTD%20%20-%20259015%2020-Mar-2014_files/image028.gif){kind=small}
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears average in its line in
2013.
l
SC’s net profit margin is good in 2013.
l
SC’s return on total assets is good in 2013.
l
SC’s cost of goods sold is low in 2013, comparing
with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is in a fairly good level.
l
SC’s quick ratio is maintained in a fairly good
level.
l
SC’s inventory is average in 2012 but its
conversion period of SC is long in 2013.
l
The accounts receivable is average in 2012 but its
collection period of SC appears long in 2013.
l
SC has no short-term loan in both years.
l
SC’s turnover is fair in 2013, comparing with the
size of its total assets.
LEVERAGE: FAIRLY GOOD
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly good.
%20CO%20,%20LTD%20%20-%20259015%2020-Mar-2014_files/image029.gif){kind=small}
SC is considered small-sized in its line with fairly good financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 61.09 |
|
|
1 |
Rs. 101.41 |
|
Euro |
1 |
Rs. 85.07 |
INFORMATION DETAILS
|
Report Prepared
by : |
DPT |
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.