MIRA
INFORM REPORT
|
Report Date : |
17.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
ALLY HI-TECH
CO., LTD. |
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Registered Office : |
No. 201, Section 1, Changcheng
Road, Southwest Airport-Based Economic Development Zone, Shuangliu County, Chengdu,
Sichuan Province, 610225 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
18.09.2000 |
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Com. Reg. No.: |
510109000050061 |
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Legal Form : |
Shares limited co. |
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Line of Business : |
Engaged in researching & developing gas products; manufacturing
and selling chemicals |
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No. of Employees |
100 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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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 |
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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
ALLY HI-TECH CO., LTD.
NO. 201, SECTION 1, CHANGCHENG ROAD,
SOUTHWEST AIRPORT-BASED ECONOMIC DEVELOPMENT ZONE, SHUANGLIU COUNTY,
CHENGDU, SICHUAN PROVINCE,
610225 PR CHINA
TEL: 86
(0) 28-62590080 FAX: 86 (0) 28-62590100
EXECUTIVE SUMMARY
INCORPORATION DATE : SEP. 18, 2000
REGISTRATION NO. :
510109000050061
REGISTERED LEGAL FORM : SHARES
LIMITED CO.
STAFF STRENGTH :
100
REGISTERED CAPITAL : CNY 13,586,000
BUSINESS LINE : R&D, manufacturing
and trading
TURNOVER : CNY 140,060,000 (AS OF DEC. 31, 2013)
EQUITIES : CNY 39,720,000 (AS OF DEC. 31, 2013)
PAYMENT : AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.23 =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 complete address should be the
heading one.
SC was registered as a Shares limited co. at
local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license).
Company Status: Shares limited co. This
form of business in PR China is defined as a legal person. Its registered
capital is divided into shares of equal par value and the co. raises
capital by issuing share certificates by promotion or by public offer.
Shareholders bear limited liability to the extent of shareholding, and the
co. is liable for its debts only to the extent of its total assets. The co
has independent property of legal person and enjoys property rights of
legal person. The characteristics of the shares limited co. are as follows: The
establishment of the co. requires at least two promoters and no more than
200, half of whom shall be domiciled in China.. Natural person are allowed
to serve as promoters. The
minimum registered capital of a co. is CNY The
board of directors must consist of five to nineteen directors. If the co. raises
capital by public offer, the promoters must not subscribe less than 35% of
the total shares. the promoters’ shares are restricted to transfer- within
one year of the offer. A state-owned
enterprise that is restructured into a shares limited co. must comply with
the conditions & requirements specified under the law &
administrative rule.
SC’s registered business scope includes technical transfer,
technical development, technical service in the field of biological, chemical,
electronic, environmental protection, and communication; manufacturing complete
sets of equipment; selling chemical products, electronic products,
communication products; researching and developing in the filed of
pharmaceuticals industry; manufacturing and selling chemical new materials;
chemical engineering, oil refining engineering, environmental special
engineering design; importing and exporting commodities and technologies. (with
permit if needed)
SC is mainly engaged in researching &
developing gas products; manufacturing and selling chemicals.
Mr.
Wang Yeqin is the legal representative and chairman of SC at present.
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 economic development zone in
Chengdu. The detailed premise information is unknown.
SC
has another operating address: B
Tel:
86 (0) 28-85130068
Fax:
86 (0) 28-85180440
http://www.allyinst.com/ The design is professional and the content is
well organized. At present the web site is in Chinese and English versions.
Email: sales@allygas.com
Organization Code: 723441862
SC’s former name was Sichuan Ally Hi-Tech Co., Ltd.
See below for SC as executive party (defendant).
|
Executed
Party |
Ally Hi-Tech
Co., Ltd. |
|
Court |
Shifang City People's Court |
|
Date of Case |
Aug. 12, 2013 |
|
Case
Number |
(2013) 00123 |
|
Claim Amount |
RMB 1,098,000 |
|
Case Status |
Completed |
|
Executed
Party |
Ally Hi-Tech
Co., Ltd. |
|
Court |
Shifang City People's Court |
|
Date of Case |
Jan. 15, 2013 |
|
Case
Number |
(2013) 00009 |
|
Claim Amount |
RMB 1,500,000 |
|
Case Status |
Completed |
Etc.
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
Gao Jianhua 3.571
Wang Yeqin 58.23
Wang Caiquan 3.654
Guo Feng 21.805
Ai Xijun 0.458
Xiong Zhiqiang 0.632
Gu Runnan 0.578
Other shareholders 11.072
l
Legal Representative and Chairman:
Mr. Wang Yeqin, with university education. 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. Zheng Shengyao, with university education.
He is currently responsible for the daily management of SC.
Working Experience(s):
At present Working in SC as general manager.
l
Directors:
Ai Xijun
Gao Jianhua
Mao Zongqiang
l
Supervisors:
Xiong Zhiqiang
Wang Caiquan
SC is mainly engaged in researching &
developing gas products; manufacturing and selling chemicals.
SC’s products mainly include: Hydrogen,
Fuel ethanol, etc.
Ally’s
products are widely used in field of steel, petroleum exploration, oil
refinery, chemistry, coal chemical industry, chlor-alkali industry, fine
chemical industry, Ploy-Si, industry gas, fuel ethanol, synthesis ammonia,
methanol synthesis, metallurgy, power
metallurgy, foodstuff, aromatics, electronics, glass, medicines Intermediates,
astronavigation, pharmaceuticals, fuel-cell, environmental protection,
automobiles and new energies etc.
SC
sources its materials 60% from domestic market and 40% from overseas market. SC
sells 70% of its products in domestic market and 30% 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 T/T, L/C, Check and Credit of
30-60 days.
Note:
SC declined to release its major suppliers and clients.
SC is known to have the following subsidiaries and branch:
Ally Hi-Tech Co., Ltd. Shanghai Branch
-------------------------------------------------------
Registered no.: 310115001889993
Principal: Yu Weiping
Incorporation date:
Tel: 021-58204625
Fax: 021-58317594
Chengdu
Ally Hi-Tech Machinery Co., Ltd. (Literal Translation)
-------------------------------------
Registered
no.: 510122000047069
Legal
representative: Gao Jianhua
Date
of incorporation:
Tel:
028-85713205
Fax:
028-85713205
Ganzhou
Chuanhui Gas Equipment Manufacturing Co., Ltd.
------------------------------------------
Registered
no.: 360721210001331
Legal
representative: Wei Ganhua
Date
of incorporation:
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.
The banking
information of SC is unknown.
Balance Sheet
Unit: CNY’000
|
|
as
of Dec. 31, 2013 |
|
Cash & bank |
12,340 |
|
Bills receivable |
3,570 |
|
Inventory |
36,070 |
|
Accounts
receivable |
53,250 |
|
Advances to
suppliers |
9,760 |
|
Other
receivables |
4,200 |
|
Other current
assets |
2,030 |
|
|
------------------ |
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Current assets |
121,220 |
|
Fixed assets net
value |
28,240 |
|
Projects under
construction |
0 |
|
Long term
investment |
7,570 |
|
Intangible
assets |
7,890 |
|
Other assets |
620 |
|
|
------------------ |
|
Total assets |
165,540 |
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|
============= |
|
Short loans |
13,000 |
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Bills payable |
9,920 |
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Accounts payable |
41,480 |
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Other payable |
5,180 |
|
Taxes payable |
170 |
|
Advances from
clients |
53,480 |
|
Accrued payroll |
1,740 |
|
Other current
liabilities |
80 |
|
|
------------------ |
|
Current
liabilities |
125,050 |
|
Long term
liabilities |
770 |
|
|
------------------ |
|
Total
liabilities |
125,820 |
|
Equities |
39,720 |
|
|
------------------ |
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Total
liabilities & equities |
165,540 |
|
|
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31,
2013 |
|
Turnover |
140,060 |
|
Cost of goods
sold |
112,760 |
|
Taxes
and additional of main operation |
410 |
|
Sales expense |
12,130 |
|
Management expense |
11,880 |
|
Finance expense |
1,850 |
|
Profit before
tax |
800 |
|
Less: profit tax |
420 |
|
Profits |
380 |
Important Ratios
=============
|
|
as
of Dec. 31, 2013 |
|
*Current ratio |
0.97 |
|
*Quick ratio |
0.68 |
|
*Liabilities
to assets |
0.76 |
|
*Net profit
margin (%) |
0.27 |
|
*Return on
total assets (%) |
0.23 |
|
*Inventory
/Turnover ×365 |
94 days |
|
*Accounts
receivable/Turnover ×365 |
139 days |
|
*Turnover/Total
assets |
0.85 |
|
* Cost of
goods sold/Turnover |
0.81 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in its line.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC appears fairly large in 2013.
l
The accounts receivable of SC appears large in
2013.
l
SC’s short-term loan is in an average level.
l
SC’s turnover is in a fair level, comparing with
the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is fairly high.
l
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 accounts receivable
could be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.58.86 |
|
|
1 |
Rs.98.82 |
|
Euro |
1 |
Rs.80.71 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
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.