MIRA
INFORM REPORT
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Report Date : |
16.05.2014 |
IDENTIFICATION DETAILS
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Name : |
SHANDONG
WANDA BOTO TYRE CO., LTD. |
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Registered Office : |
No. 68, Yongshen Road,
Dongying City, Shandong Province 257506 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
15.04.2004 |
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Com. Reg. No.: |
370521018008226 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in manufacturing and selling automobile tyre |
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No. of Employees |
3,000 |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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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
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately High Risk |
C1 |
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High Risk |
C2 |
|
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
|
Source
: CIA |
Company name and address
SHANDONG WANDA BOTO TYRE CO., LTD.
NO. 68, YONGSHEN ROAD, DONGYING
CITY,
SHANDONG PROVINCE 257506 PR
CHINA
TEL: 86 (0) 546-2068578
FAX: 86 (0) 546-2061318
EXECUTIVE SUMMARY
INCORPORATION DATE : APR. 15, 2004
REGISTRATION NO. :
370521018008226
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
3,000
REGISTERED CAPITAL : CNY 400,000,000
BUSINESS LINE : MANUFACTURING & TRADING
TURNOVER :
CNY 2,497,780,000 (AS OF DEC. 31, 2013)
EQUITIES :
CNY -157,760,000 (AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : FAIR
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 Limited liabilities co. at
local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on April 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 automobile, engineering and agricultural
tyre; selling passenger car tyre, motorcycle tyre, special tyre, inner tube,
flap, capsule, hub and other rubber products and spare parts; importing and
exporting goods.
SC is mainly engaged in manufacturing and
selling automobile tyre.
Mr.
Kou Ruqiang is the legal representative and chairman of SC at present
SC is known to
have approx. 3,000 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 Dongying. Our checks reveal that SC owns the total premise about
150,000 square meters.
www.bototyre.com The design is professional
and the content is well organized. At present it is in Chinese and English
versions.
Email: info@bototyre.com
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
|
Company name |
Shandong Wanda Tyre Co., Ltd. |
The present one |
|
Shareholders |
Dongying Wanda Group Co., Ltd. 96%, Beijing
Research & Design Institute of Rubber Industry 4% |
Wanda Group Co., Ltd. 96%, Beijing Research & Design Institute of
Rubber Industry 4% |
|
|
|
Legal representative |
Zhang Ruiguo |
Ba Yujian |
|
|
Registered capital |
CNY 60,000,000 |
CNY 140,000,000 |
|
Shareholders |
Wanda Group Co., Ltd. 96%, Beijing Research & Design Institute of
Rubber Industry |
Wanda Group Co., Ltd. 80.43%, Beijing Research & Design Institute of Rubber Industry 1.71%,
Wanda Holding Group Co., Ltd. 17.86% |
|
|
|
Registered capital |
CNY 140,000,000 |
CNY 240,000,000 |
|
% of Shareholding |
Wanda Group Co., Ltd. 80.43%, Beijing Research & Design Institute of
Rubber Industry 1.71%, Wanda Holding Group Co., Ltd. 17.86% |
Wanda Group Co., Ltd. 78.17%, Beijing Research & Design Institute
of Rubber Industry 1%, Wanda Holding Group Co., Ltd. 20.83% |
|
|
|
Registered capital |
CNY 240,000,000 |
CNY 300,000,000 |
|
% of Shareholding |
Wanda Group Co., Ltd. 78.17%, Beijing Research & Design Institute
of Rubber Industry 1%, Wanda Holding Group Co., Ltd. 20.83% |
Wanda Group Co., Ltd. 78.2%, Beijing Research & Design Institute
of Rubber Industry 0.8%, Wanda Holding Group Co., Ltd. 21% |
|
|
|
Registered capital |
CNY 300,000,000 |
The present amount |
|
% of Shareholding |
Wanda Group Co., Ltd. 78.2%, Beijing Research & Design Institute of
Rubber Industry 0.8%, Wanda Holding Group Co., Ltd. 21% |
The present ones |
|
|
Unspecified |
Registration No. |
3705211800822 |
The present one |
|
Legal representative |
Ba Yujian |
Present one |
Organization code: 760989990
Subject passed
the annual inspection of 2012 with Administration for Industry & Commerce.
See below for SC as executive party (defendant).
|
SC |
|
|
Court |
Kenli County People's Court |
|
Date of Case |
|
|
Case
Number |
(2014) 00305 |
|
Claim Amount |
RMB 115,567 |
|
Case Status |
In process |
|
Executed
Party |
SC |
|
Court |
Kenli County People's Court |
|
Date of Case |
|
|
Case
Number |
(2013) 00528 |
|
Claim Amount |
RMB 129,406.48 |
|
Case Status |
In process |
|
Executed
Party |
SC |
|
Court |
Kenli County People's Court |
|
Date of Case |
|
|
Case
Number |
(2012) 00288 |
|
Claim Amount |
RMB 120,617.46 |
|
Case Status |
Complete |
|
Executed
Party |
SC |
|
Court |
Qingdao City Shinan District People's Court |
|
Date of Case |
|
|
Case
Number |
(2012) 10365 |
|
Claim Amount |
RMB 132,640 |
|
Case Status |
In process |
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
Wanda Group Co., Ltd. 83.65
Beijing Research & Design
Institute of Rubber Industry 0.6
Wanda Holding Group Co., Ltd. 15.75
Wanda Group Co., Ltd.
------------------------------
Reg. No.: 370000018004944
Incorporation date: June 25, 1994
Legal representative: Shang Jianli
Tel: 0546-2061318
Fax: 0546-2061318
Add: Wanda Mansion, Minfeng Road, Kenli
Administrative District, Dongying
Web: http://www.chinawanda.com/
Email: wanda@chinawanda.com
Wanda Holding Group Co., Ltd.
------------------------------
Reg. No.: 370521228011674
Incorporation date: Sep. 27, 2000
Legal representative: Shang Jiyong
l
Legal representative and chairman:
Mr. Kou Ruqiang is
currently responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as legal representative and
chairman
SC is mainly engaged in manufacturing and selling automobile
tyre.
SC’s main products include: PCR, TBR, OTR, etc.
SC sources its materials 80% from domestic market, and 20%
from overseas market. SC sells 50% of its products in domestic market, mainly
Shandong province, and 50% 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 refused to release its major suppliers and clients.
Shandong Wanda Chemical Industries Co., Ltd.
=================================
Registered no.: 370521018007295
Legal representative:
Wang Chaowen
Incorporation
date:
Shandong
Wanda Cable Co., Ltd.
=================================
Registered
no.: 370521018001843
Legal representative: Ba Yinhua
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.
China
Construction Bank
Account No.: N/A
Relationship:
Normal
Balance Sheet
Unit: CNY’000
|
|
As of Dec. 31,
2013 |
|
Total assets |
5,796,700 |
|
5,954,460 |
|
|
Equities |
-157,760 |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31,
2013 |
|
Turnover |
2,497,780 |
|
Cost of goods
sold |
2,266,190 |
|
Profit before
tax |
-111,050 |
|
0 |
|
|
Profits |
-111,050 |
Note: SC refused to release its detailed financial statements.
Important Ratios
=============
|
|
As
of Dec. 31, 2013 |
|
*Liabilities
to assets |
1.03 |
|
*Net profit
margin (%) |
-4.45 |
|
*Return on
total assets (%) |
-1.92 |
|
*Turnover/Total
assets |
0.43 |
|
* Cost of
goods sold/Turnover |
0.91 |
PROFITABILITY:
FAIR
l
The turnover of SC appears good in its line.
l
SC’s net profit margin is fair.
l
SC’s return on total assets is fair.
l
SC’s cost of goods sold is average, comparing with
its turnover.
l
SC’s turnover is in a fair level, comparing with
the size of its total assets.
LEVERAGE: POOR
l
The debt ratio of SC is too high.
l
The risk for SC to go bankrupt is above average.
Overall financial
condition of the SC: Fair
SC is considered large-sized in its line with fair financial conditions.
Taking into consideration of SC’s general performance and operation size,
C.O.D. is recommended.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.47 |
|
|
1 |
Rs.99.70 |
|
Euro |
1 |
Rs.81.55 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUM |
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|
Report Prepared
by : |
PDT |
RATING EXPLANATIONS
|
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 |
|
|
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.