MIRA
INFORM REPORT
|
Report Date : |
19.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
SHANDONG LUYANG SHARE CO., LTD. |
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Registered Office : |
NO. 11 Yihe Road, Yiyuan County, Zibo, Shandong Province,
256120 PR |
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|
|
|
Country : |
China |
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|
Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
14.10.1992 |
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Com. Reg. No.: |
370000018054440 |
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|
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Legal Form : |
Shares Limited Co. |
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|
|
|
Line of Business : |
Manufacturing and selling new
energy-saving materials. |
|
|
|
|
No. of Employees |
1,838 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
Payment Behaviour : |
No complaints |
|
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 |
|
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
LUYANG SHARE CO., LTD.
NO. 11 YIHE ROAD, YIYUAN COUNTY, ZIBO,
SHANDONG PROVINCE, 256120 PR CHINA
TEL: 86 (0) 533-3289991/3288764 FAX: 86 (0) 533-3282059/3260656
EXECUTIVE SUMMARY
INCORPORATION DATE :
OCT. 14, 1992
REGISTRATION NO. :
370000018054440
REGISTERED LEGAL FORM :
SHARES LIMITED CO.
CHIEF EXECUTIVE :
MR. LU CHENGBIN (CHAIRMAN)
STAFF STRENGTH :
1,838
REGISTERED CAPITAL : CNY 233,978,700
BUSINESS LINE :
MANUFACTURING AND TRADING
TURNOVER :
CNY 1,026,457,000 (CONSOLIDATED, as of dec. 31, 2013)
EQUITIES :
CNY 1,513,323,000 (CONSOLIDATED, as of dec. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY
GOOD
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
WELL-KNOWN
EXCHANGE RATE :
CNY 6.2337 = 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
Shares limited co. at Shandong
Provincial Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on Oct. 14, 1992.
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 printing package and
decorate presswork. (with permit if needed). manufacturing and selling
aluminosilicate refractory fiber materials, perlite insulation materials, fiberglass products, high temperature adhesives,
castables, high-temperature fiber material, rock cotton material, unshaped
refractory materials and refractory bricks, light steel structure, color steel
pressure plate series; selling refractory cement; importing and exporting
business; corrosion insulation engineering, furnace construction within the
scope of the qualification certificate; recycling renewable materials; light
steel structure engineering design, installation and construction, fire
protection engineering design, construction and maintenance of facilities (with
permit if needed). (with permit if needed).
SC is
mainly engaged in manufacturing and selling new energy-saving
materials.
Mr. Lu
Chengbin is legal representative and chairman of SC at present.
SC is known to have approx. 1,838 employees at
present, including 1,189 production staff, 112 administrative staff, 233
technicians, 34 financial staff and 270 salesmen.
SC is currently operating at the above stated address, and
this address houses its operating office and factory in the industrial zone of
Zibo. Our checks reveal that SC owns the total premise, but the gross area of
the premise is unspecified.
http://www.luyang.com The design is professional and the content is well organized.
At present it is in Chinese, English and Russian versions.
E-Mail: luyang@luyangwool.com
SC is a listed company in Shenzhen Stock Exchange Market with
the code of 002088.
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
1996-12 |
Company name |
Zibo Luyang Energy-saving Material
Corporate Co., Ltd. |
Present one |
SC has past
ISO9001:2000 Quality System Certification and ISO14001 Environmental Protection
System Certification. It successively gets 61 patent technologies and 34
scientific and technical payoffs, and it is a modern enterprise group of high
science and high growth type.
Honours:
Organization
code: 267171810
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS: (As of Mar.
31, 2014)
Name %
of Shareholding
Nanma Town Collective Asset
Management Center of Yiyuan County 33.03
Lu Chengbin 13.8
Sheng Xintai 1.1
Bi Yanhai 1.1
Gao Junchang 1.09
Ren Defeng 1.04
Lu Chenghong 0.98
Ding Guojin 0.51
Zhang Chengtian 0.49
Du Zhaofeng 0.45
Other Shareholders 46.41
l
Legal Representative and Chairman:
Mr. Lu Chengbin, born in 1959, with
university education, senior economist. He 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 Jinan Luyang Energy-saving
Technology Development Co., Ltd. as legal representative.
l
President:
Mr. Sheng Xintai, born in 1966, with university education,
senior economist. He is currently responsible for the daily management of SC.
Working Experience(s):
At present Working
in SC as president.
l
Vice Presidents:
Mr. Zheng Weijin, born in 1974, with
junior college education;
Mr. Lu Chenghong, born in 1964, with
junior college education, engineer;
Mr. Lu Chao, born in 1971, with
university education, political division, assistant economist;
Mr. Du Yixue , born in 1971, with
master’s degree.
They are currently responsible for the
daily management of SC.
Working Experience(s):
At present Working in SC as vice presidents.
Mr. Lu Chao is also working in Inner
Mongolia Luyang Energy-saving Materials Co., Ltd. as
legal representative.
l
Directors:
Hu Xiaoyuan
Xu Bo
Zheng Lihui
Gao Junchang
Lu Xiaokun
l
Supervisors:
Bi Yanhai
Wang Xia
Hao Jianxiang
SC is
mainly engaged in manufacturing and selling new energy-saving
materials.
SC’s products mainly include: ceramic fiber products, soluble fiber products, aluminum products,
lightweight firebrick products, unshaped refractory materials, etc.
SC sources its materials 95% from domestic market and 5%
from the overseas market. SC sells 10% of its products to overseas market and 90% in domestic
market.
The buying terms of SC include Check, L/C, 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 customers and suppliers.
SC is known to invest in the following companies:
Qingdao Saidun Ceramic Fiber Co., Ltd.
============================
Incorporation
date:
Registration
no.: 370212018072980
Registered
capital: CNY 16,000,000
Legal
rep.: Lu Junhua
Legal
form: One-person Limited Liability Company
E-mail: info@saidun.com
Tel: 86-532-88705678
Fax: 86-532-88705677
Xinjiang Luyang Ceramic Fiber Co., Ltd.
============================
Incorporation
date:
Registration
no.: 650106030000255
Registered
capital: CNY 38,050,000
Legal
rep.: Lu Chengbiao
Legal
form: One-person Limited Liability Company
Inner Mongolia Luyang Energy-saving
Materials Co., Ltd.
===========================================
Incorporation
date:
Registration
no.: 150117000003500
Registered
capital: CNY 210,000,000
Legal
rep.: Lu Chao
Legal
form: One-person Limited Liability Company
E-mail:
huzhouzhou100@163.com
Tel:
86-471-5293001
Fax:
86-471-5293001
Guizhou Luyang Energy-saving Materials
Co., Ltd.
======================================
Incorporation
date:
Registration
no.: 520113000079545
Registered
capital: CNY 55,000,000
Legal
rep.: Cui Xicun
Legal form: One-person Limited Liability Company
Jinan Luyang Energy-saving Technology Development Co., Ltd.
==============================================
Incorporation
date:
Registration
no.: 370102200071480
Registered
capital: CNY 1,000,000
Legal
rep.: Lu Chengbin
Legal form: One-person Limited Liability Company
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.
Consolidated
Balance Sheet
Unit: CNY’000
|
|
as
of Dec. 31, 2013 |
as of Dec. 31, 2012 |
|
Cash
& bank |
40,707 |
106,279 |
|
Notes
receivable |
138,204 |
83,678 |
|
Inventory |
201,790 |
181,174 |
|
Accounts
receivable |
481,772 |
424,727 |
|
Advances to
suppliers |
33,089 |
51,366 |
|
Other
receivables |
9,870 |
6,828 |
|
Other
current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
assets |
905,432 |
854,052 |
|
Long
term investment |
312 |
312 |
|
Investment
property |
38,159 |
10,310 |
|
Fixed
assets net value |
740,878 |
643,902 |
|
Projects
under construction |
28,131 |
186,050 |
|
Project
materials |
16,953 |
2,044 |
|
Intangible
assets |
136,549 |
138,566 |
|
Long term
deferred expenses |
427 |
441 |
|
Deferred income
tax assets |
17,157 |
14,456 |
|
Other
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
assets |
1,883,998 |
1,850,133 |
|
|
============= |
============= |
|
Short
loans |
170,000 |
75,000 |
|
Notes
payable |
50,000 |
40,000 |
|
Accounts
payable |
106,682 |
120,347 |
|
Advances from
clients |
33,159 |
32,949 |
|
Employee pay
payable |
7,839 |
7,837 |
|
Tax
payable |
-11,170 |
-8,513 |
|
Other
accounts payable |
3,128 |
3,741 |
|
Other
current liabilities |
1,917 |
101,235 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
361,555 |
372,596 |
|
Long
term liabilities |
9,120 |
27,285 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
370,675 |
399,881 |
|
Equities |
1,513,323 |
1,450,252 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
1,883,998 |
1,850,133 |
|
|
============= |
============= |
Consolidated
Income Statement
Unit: CNY’000
|
|
as of Dec. 31, 2013 |
as of Dec. 31, 2012 |
|
Turnover |
1,026,457 |
1,003,341 |
|
Cost of goods
sold |
715,062 |
710,177 |
|
Taxes
and additional of main operation |
7,890 |
8,002 |
|
Sales expense |
106,441 |
91,750 |
|
Management expense |
83,458 |
81,409 |
|
Finance expense |
11,145 |
8,938 |
|
Asset impairment loss |
12,752 |
9,606 |
|
Investment
income |
40 |
10 |
|
Non-operating
income |
10,427 |
4,765 |
|
Non-operating expense |
921 |
2,751 |
|
Profit before
tax |
99,255 |
95,483 |
|
Less: profit tax |
12,786 |
10,847 |
|
Profits |
86,469 |
84,636 |
Important Ratios
=============
|
|
as of Dec. 31, 2013 |
as of Dec. 31, 2012 |
|
*Current ratio |
2.50 |
2.29 |
|
*Quick ratio |
1.95 |
1.81 |
|
*Liabilities
to assets |
0.20 |
0.22 |
|
*Net profit
margin (%) |
8.42 |
8.44 |
|
*Return on
total assets (%) |
4.59 |
4.57 |
|
*Inventory
/Turnover ×365 |
72 days |
66 days |
|
*Accounts
receivable/Turnover ×365 |
172 days |
155 days |
|
*Turnover/Total
assets |
0.54 |
0.54 |
|
* Cost of goods
sold/Turnover |
0.70 |
0.71 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears good in its
line in both years, and it increased in 2013.
l
SC’s net profit margin is fairly good
in both years.
l
SC’s return on total assets is average
in both years.
l
SC’s cost of goods sold is average in
both years, comparing with its turnover.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in
a fairly good level in both years.
l
SC’s quick ratio is maintained in a
normal level in both years.
l
The inventory of SC appears average in
both years.
l
The accounts receivable of SC appears
fairly large in both years.
l
SC’s short-term loan is average in both
years.
l
SC’s turnover is in a fair level in
both years, 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 low.
Overall
financial condition of the SC: Fairly good.
SC is considered large-sized in its line with fairly good
financial conditions. The large amount of 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.