MIRA
INFORM REPORT
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Report Date : |
09.05.2014 |
IDENTIFICATION DETAILS
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Name : |
Fuzhou Launtop M
& E co., ltd. |
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Registered Office : |
Hongkuan Industrial Village, Yangxia Street, Fuqing City, Fuzhou, Fujian Province, 350323 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
15.09.2000 |
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Com. Reg. No.: |
350100400001888 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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Line of Business : |
Manufacturing power machinery (diesel, gasoline, electric
motors, generators, generator set, outboard units, etc.); agricultural
machinery (pumps, water pumps, water pump set, tillers, tractors, etc.);
garden machinery (cropper, lawn mower, sprayers, dusting machine, washing
machines, etc.); food processing machinery (milling machines, threshing
machines, etc.) and its associated components design, processing and
after-sale service |
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No. of Employees : |
461 |
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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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate 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
Fuzhou Launtop M & E co., ltd.
HONGKUAN INDUSTRIAL VILLAGE, YANGXIA STREET, FUQING CITY,
FUZHOU, FUJIAN PROVINCE, 350323 PR CHINA
TEL: 86 (0)
591-83859562/83859619/85191157
FAX: 86 (0) 591-85191586
EXECUTIVE SUMMARY
INCORPORATION DATE :
SEP. 15, 2000
REGISTRATION NO. : 350100400001888
REGISTERED LEGAL FORM :
CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE
CHIEF EXECUTIVE :
CAI BIN
(CHAIRMAN)
STAFF STRENGTH :
461
REGISTERED CAPITAL : CNY 27,000,000
BUSINESS LINE :
MANUFACTURING & TRADING
TURNOVER :
CNY 269,600,000 (AS OF DEC. 31, 2013)
EQUITIES :
CNY 50,970,000 (AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE : CNY 6.2306 = 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
Note: SC’s headquarters is located in the heading address, and the is the sales office address.
SC was registered as a Chinese-foreign equity joint venture enterprise at local Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on Sep. 15, 2000.
Company Status: Chinese-foreign equity joint venture
enterprise This form of business in PR
China is defined as a legal person. It is a limited co. jointly invested by
one or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of
capital investment. The investing parties exercise business management,
share profits and bear all risks and liabilities of the co. together. The
equity joint venture law requires that foreign party contribute not less
than 25% of the registered capital, with no maximum. The investing parties
are free to agree on method of profit distribution and liabilities bearing
according to the proportion of capital investment. Each investing parties
contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has a
limited duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition
position in international market may extend beyond the 50 years limit.
SC’s registered business scope includes manufacturing power machinery (diesel, gasoline, electric motors, generators, generator set, outboard units, etc.); agricultural machinery (pumps, water pumps, water pump set, tillers, tractors, etc.); garden machinery (cropper, lawn mower, sprayers, dusting machine, washing machines, etc.); food processing machinery (milling machines, threshing machines, etc.) and its associated components design, processing and after-sale service.
SC is mainly engaged in manufacturing and selling power machinery.
Cai Bin is legal representative and chairman of SC at present.
SC is known to have approx. 461 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 Fuqing. Detailed premise information is not available at present.
Sales office: No. 56, Jinyan Road, Jinshan Industrial Park, Fuzhou city, Fujian Province
http://www.launtop.com/ The design is professional and the content is well organized. At present, the web is in English version.
E-mail: sales301@launtop.com
SC has passed ISO9001, CSA, CE, etc.
Changes of its
registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
Unknown |
Registration no. |
005316 |
Present one |
|
Legal representative |
Lin Yingbin |
Subject passed the annual inspection of 2012 with Administration for Industry & Commerce.
Organization Code: 633909716
There is no record of litigation till now.
MAIN SHAREHOLDERS:
Name % of Shareholding
Fuzhou Launtop Century Trading Co., Ltd. (literal translation) 5
Lin Yingbin (Hong Kong People) 95
Fuzhou Launtop Century Trading Co., Ltd. (literal translation)
===============================
Registration no.: 350100100070762
Registered capital: CNY 3,000,000
Legal representative: Zhuo Benyu
Legal representative
and chairman:
Cai Bin is currently responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as legal representative and chairman.
Also working in Fuzhou Jucheng Electromechanical Co., Ltd. (in Chinese pinyin) as legal representative.
Vice-chairman:
Chen Yongze is currently responsible for the daily management of SC.
Working Experience(s):
At present Working in SC as vice-chairman.
Director and general
manager:
Zhuo Benyu is currently responsible for the daily management of SC.
Working Experience(s):
At present Working
in SC as director and general manager.
Also working in Fuzhou Launtop Century Trading Co., Ltd. (literal translation) as legal representative.
Supervisor:
Chen Songbo
SC is mainly engaged in manufacturing and selling power machinery.
SC’s products mainly include:
Engine:
Diesel engine
Petrol engine
Generator:
Diesel generator
Petrol generator
Genset powered by original Japan engine
LPG generator
Heavy duty generator
Pump:
Diesel pump
Petrol pump
SC sources its materials 100% from domestic market. SC sells its products 20% in domestic market, and 80% 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 main suppliers and clients.
SC is known to invest
in the following companies:
Fuzhou Jucheng Electromechanical Co., Ltd. (in Chinese pinyin)
==========================
Registration no.: 350104100163557
Registered capital: CNY 1,000,000
Legal representative: Cai Bin
Zhangzhou Longxiang Investment Co., Ltd. (in Chinese pinyin)
==========================
Registration no.: 350600100030833
Registered capital: CNY 73,250,000
Legal representative: Chen Zhenglong
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 declined to release its banking details.
Balance Sheet
Unit: CNY’000
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As of Dec. 31, 2013 |
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Cash & bank |
26,830 |
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Notes receivable |
150 |
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Inventory |
30,530 |
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Accounts receivable |
41,300 |
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Other Accounts receivable |
33,530 |
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Advances to suppliers |
2,800 |
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Other current assets |
170 |
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------------------ |
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Current assets |
135,310 |
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Fixed assets net value |
6,430 |
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Projects under construction |
27,550 |
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Long term investment |
15,330 |
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Intangible and other assets |
0 |
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------------------ |
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Total assets |
184,620 |
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============= |
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Short loans |
0 |
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Notes payable |
57,330 |
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Accounts payable |
68,750 |
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Accrued payroll |
10 |
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Taxes payable |
-1,700 |
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Other Accounts payable |
5,320 |
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Advances from clients |
3,300 |
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Other current liabilities |
640 |
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Current liabilities |
133,650 |
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Long term liabilities |
0 |
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Total liabilities |
133,650 |
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Equities |
50,970 |
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Total liabilities & equities |
184,620 |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2013 |
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Turnover |
269,600 |
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Cost of goods sold |
243,420 |
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Taxes and additional of main operation |
370 |
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Sales expense |
6,170 |
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Management expense |
7,500 |
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Finance expense |
460 |
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Profit before tax |
12,550 |
|
3,140 |
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Profits |
9,410 |
Important Ratios
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As of Dec. 31, 2013 |
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*Current ratio |
1.01 |
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*Quick ratio |
0.78 |
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*Liabilities to assets |
0.72 |
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*Net profit margin (%) |
3.49 |
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*Return on total assets (%) |
5.10 |
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*Inventory /Turnover ×365 |
42 days |
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*Accounts receivable/Turnover ×365 |
56 days |
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*Turnover/Total assets |
1.46 |
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* Cost of goods sold/Turnover |
0.90 |
PROFITABILITY: FAIRLY GOOD
The turnover of SC appears fairly good in its line.
SC’s net profit margin appears average.
SC’s return on total assets appears fairly good.
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a fair level.
The inventory of SC is maintained in an average level.
The accounts receivable of SC is average.
SC has no short-term loan 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.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.99 |
|
|
1 |
Rs.101.75 |
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Euro |
1 |
Rs.83.48 |
INFORMATION DETAILS
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Analysis Done by
: |
RAS |
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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 |
-- |
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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.