MIRA
INFORM REPORT
|
Report Date : |
21.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
CHANGZHOU DONGFENG AGRICULTURAL MACHINERY GROUP CO., LTD. |
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Registered Office : |
No. 328 Xinye
Road, Xinzha Town, Zhonglou District Changzhou, Jiangsu Province 213012 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
25.02.1994 |
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Com. Reg. No.: |
320400000001250 |
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Legal Form : |
Limited Liability
Company |
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Line of Business : |
Engaged in
general cargo; manufacturing tractors and accessories, farm vehicles and
agricultural machinery, printing machinery, engineering machinery, stroller;
exporting self-made mechanical and electrical products, complete sets of equipment
and relative technology; importing raw materials, mechanical
equipments, instruments, parts and
technology needed in manufacture and research; selling industrial production,
building materials, hardware, and chemical products (excluding dangerous goods). Subject product ranges includes four-wheel
tractors, power tiller/walking tractors, tractor implements & diesel
engine series |
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No of Employees : |
1,800 (Approximately) |
RATING & COMMENTS
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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 |
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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
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
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 |
|
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, 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
CHANGZHOU DONGFENG AGRICULTURAL
MACHINERY GROUP CO., LTD.
NO. 328 XINYE ROAD, XINZHA TOWN, ZHONGLOU DISTRICT
CHANGZHOU, JIANGSU PROVINCE 213012 PR CHINA
TEL: 86 (0) 519-83256560/83260234
FAX: 86 (0) 519-83260445
EXECUTIVE SUMMARY
Date
of Registration : february 25,
1994
REGISTRATION
NO. : 320400000001250
LEGAL
FORM : Limited Liability Company
CHIEF EXECUTIVE :
xu
xiaolin (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 270,000,000
staff :
1,800
BUSINESS CATEGORY : MANUFACTURING & trading
Revenue : CNY 2,393,847,000 (AS OF DEC. 31, 2013)
EQUITIES : CNY
560,581,000 (AS OF DEC. 31, 2013)
WEBSITE : www.dfamgc.com
E-MAIL : dfam@dfamgc.com
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
fairly good
OPERATIONAL TREND : STEADY
GENERAL
REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.23 = USD 1
Adopted abbreviations (as follows)
SC - Subject Company (the company inquired by you)
N/A – Not available
CNY – China Yuan Ren Min Bi
OPERATIONAL TREND & GENERAL REPUTATION
This section aims at
indicating the relative positions of SC in respect of its operational trend
& general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not
known Not
yet be determined
LEGAL STATUS
& HISTORY
SC was
established as a limited liabilities company of PRC with State Administration
of Industry & Commerce (SAIC) under registration No.: 320400000001250 on february 25, 1994.
SC’s Organization Code Certificate
No.: 13719179-2
SC’s Tax No.: 320400137191792
SC’s registered capital: CNY 270,000,000
SC’s paid-in capital: CNY 270,000,000
Registration Change Record:-
|
Date |
Change
of Contents |
Before
the change |
After the change |
|
-- |
Registered Capital |
CNY 96,000,000 |
CNY 101,000,000 |
|
Registered Capital |
CNY 101,000,000 |
CNY 252,000,000 |
|
|
Registered Capital |
CNY 252,000,000 |
CNY 270,000,000 |
|
|
Legal Representative |
Xuan Bihua |
Xu Xiaolin |
Current Co search indicates SC’s shareholders & chief executives
are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Hangzhou Ziqiang Chain Drive Co., Ltd. |
52.96 |
|
Hangzhou Donghua Chain Group Co., Ltd. |
11.85 |
|
Xuan Cheng, Xuan Bihua and
Shen Ying |
35.19 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Xu
Xiaolin |
|
Director |
Xuan
Bihua |
|
Supervisor |
Chen
Bowei |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name
%
of Shareholding
Hangzhou Ziqiang Chain Drive
Co., Ltd. 52.96
Hangzhou Donghua Chain Group
Co., Ltd. 11.85
Xuan Cheng, Xuan Bihua and Shen
Ying 35.19
Hangzhou Ziqiang Chain Drive Co., Ltd.
=================================
Date of Registration: September 23, 1999
Registration No.: 320184000033901
Registered Capital: CNY 25,000,000
Hangzhou Donghua Chain Group Co., Ltd.
==================================
Date of Registration: October 23, 1991
Registration No.: 330104000030514
Registered Capital: CNY 160,000,000
MANAGEMENT
Xu
Xiaolin, Legal
Representative, Chairman and General Manager
--------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 53
Ø
ID# 320411610208001
Ø
Qualification:
University
Ø
Working
experience (s):
Before, worked in SC as general
manager
At present, working in SC as legal
representative, chairman and general manager
Xuan
Bihua, Director
---------------------------------------
Ø
Gender: M
Ø
Age: 55
Ø
ID# 330303590406071
Ø
Qualification:
University
Ø
Working
experience (s):
Before, worked in SC as legal representative and
chairman
At present, as director of SC
Chen Bowei, Supervisor
------------------------------------------
Ø
Gender: F
Ø
Age: 64
Ø
ID# 320404500224061
BUSINESS
OPERATION
SC’s registered
business scope includes general cargo; manufacturing tractors and accessories,
farm vehicles and agricultural machinery, printing machinery, engineering
machinery, stroller; exporting self-made mechanical and electrical products,
complete sets of equipment and relative technology; importing
raw materials, mechanical equipments, instruments,
parts and technology needed in manufacture and research; selling
industrial production, building materials, hardware, and chemical products
(excluding dangerous goods).
SC is mainly
engaged in manufacturing and selling tractors.
SC’s
products mainly include: four-wheel tractors, power tiller/walking
tractors, tractor implements & diesel engine series
SC sources its materials 100% from domestic market, mainly Guangdong. SC sells 70% of its products in domestic market, and 30% to overseas market, mainly USA, Europe, Mid East, Southeast Asia, etc.
SC sources its materials 100%
from domestic market. SC sells 80% of its products in domestic market, and 20%
to overseas market, mainly Southeast Asia, America and Europe.
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.
*Major Customers:
==============
Tongliao Guangmao Agricultural Machinery Co.,
Ltd.
Kashi Liangge Agricultural Machinery Co., Ltd.
*Major Suppliers:
==============
Changchai Co., Ltd.
Xuzhou
Xulun Rubber Co., Ltd.
Changzhou
Feitian Gear Co., Ltd.
Shandong
Hongyu Agricultural Machinery Co., Ltd.
Jiangsu
Xindao Machinery Co., Ltd.
Staff & Office:
--------------------------
SC is
known to have approx. 1,800
staff at present.
SC owns an area as
its operating office & factory of approx. 350,000 sq. meters at the heading
address.
RELATED
COMPANY
SC is known to
have the following subsidiaries at present:
n
Changzhou Dongfeng Machinery Accessories Factory
Co., Ltd.
n
Dongfeng Tractors America, Inc.
n
Dongfeng Europe Group Co., Ltd.
PAYMENT
Overall payment appraisal:
( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be 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’s suppliers
declined to make any comments.
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.
BANKING
Basic Bank:
Industrial & Commercial Bank of China Changzhou Zhonglou
Sub-branch
AC#:
1105020509000002505
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
464,984 |
483,036 |
|
|
Short-term investment |
700 |
300 |
|
Notes receivable |
0 |
0 |
|
Accounts
receivable |
305,802 |
378,312 |
|
Advances to
suppliers |
97,145 |
78,170 |
|
Other receivable |
10,602 |
4,762 |
|
Inventory |
228,736 |
300,599 |
|
Deferred
expenses |
3,776 |
5,658 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
1,111,745 |
1,250,837 |
|
Long-term
investment |
5,500 |
5,500 |
|
Fixed assets |
348,286 |
432,990 |
|
Construction in
progress |
86,479 |
83,658 |
|
Intangible
assets |
95,769 |
125,071 |
|
Long-term
prepaid expenses |
477 |
2,529 |
|
Deferred income
tax assets |
0 |
0 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
1,648,256 |
1,900,585 |
|
|
============= |
============= |
|
Short-term loans |
315,900 |
344,678 |
|
Notes payable |
417,940 |
478,100 |
|
Accounts payable |
359,757 |
453,353 |
|
Wages payable |
295 |
430 |
|
Dividends
payable |
7,699 |
11,113 |
|
Interest payable |
2,104 |
2,104 |
|
Taxes payable |
-85,484 |
-107,457 |
|
Advances from
clients |
48,314 |
47,800 |
|
Other payable |
24,827 |
38,893 |
|
Other current
liabilities |
396 |
394 |
|
|
------------------ |
------------------ |
|
Current liabilities |
1,091,748 |
1,269,408 |
|
Non-current
liabilities |
123,983 |
70,596 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
1,215,731 |
1,340,004 |
|
Equities |
432,525 |
560,581 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
1,648,256 |
1,900,585 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
|
Revenue |
1,965,898 |
2,393,847 |
|
Cost of sales |
1,626,706 |
1,955,955 |
|
Sales expense |
56,514 |
66,186 |
|
Management expense |
134,613 |
163,958 |
|
Finance expense |
18,763 |
21,770 |
|
Subsidize
revenue |
5,384 |
2,421 |
|
Non-business
income |
670 |
2,222 |
|
Non-business expenditure |
6,523 |
7,453 |
|
Profit before
tax |
134,657 |
190,171 |
|
Less: profit tax |
20,827 |
24,297 |
|
113,830 |
165,874 |
Important Ratios
=============
|
|
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
*Current ratio |
1.02 |
0.99 |
|
*Quick ratio |
0.81 |
0.75 |
|
*Liabilities
to assets |
0.74 |
0.71 |
|
*Net profit
margin (%) |
5.79 |
6.93 |
|
*Return on
total assets (%) |
6.91 |
8.73 |
|
*Inventory /
Revenue ×365 |
43 days |
46 days |
|
*Accounts receivable/
Revenue ×365 |
57 days |
58 days |
|
*Revenue/Total
assets |
1.19 |
1.26 |
|
*Cost of sales
/ Revenue |
0.83 |
0.82 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIRLY GOOD
l
The revenue of SC appears
fairly good in its line.
l
SC’s net profit margin is fairly good.
l
SC’s return on total assets is fairly good.
l
SC’s cost of sales is average, comparing with its revenue.
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 is maintained in an average
level.
l
The accounts receivable of SC is maintained in an
average level.
l
SC’s short-term loans are in an average level.
l
SC’s revenue is in an
average level, comparing with the size of its total assets.
LEVERAGE:
FAIRLY GOOD
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly Good.
CONCLUSIONS
SC is considered large-sized in its line with
fairly good financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.58.75 |
|
|
1 |
Rs.98.77 |
|
Euro |
1 |
Rs.80.53 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
MNL |
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.