MIRA
INFORM REPORT
|
Report Date : |
22.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
Liaoning Alsafe Technology Co., ltd. |
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Registered Office : |
No. 6 West Yi Road, Yilu
Industrial Yard, Tieling County, Shenyang,
Liaoning Province 112611 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
27.09.2011 |
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Com. Reg. No.: |
211221004022920 |
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Legal Form : |
Limited Liability Company |
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|
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Line of Business : |
Subject includes researching
metallic materials, composite materials and products; selling machinery and
equipment, electrical hardware, electronic products; manufacturing and selling
B1 seamless gas cylinders, B3 specialty gas cylinder; importing and exporting
goods and technology |
|
|
|
|
No. of Employees |
30 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
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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 |
|
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
Liaoning Alsafe Technology Co.,
ltd.
no. 6
west yi road, yilu industrial yard, tieling county, shenyang
liaoning
PROVINCE 112611 PR CHINA
TEL: 86
(0) 24-78715760/88038635
FAX: 86
(0) 24-78715766
EXECUTIVE SUMMARY
Date of Registration : September 27, 2011
REGISTRATION NO. : 211221004022920
LEGAL FORM : Limited Liability Company
REGISTERED CAPITAL : CNY 5,000,000
staff : 30
BUSINESS CATEGORY : MANUFACTURING & TRADING
Revenue :
CNY 2,521,000 (AS OF DEC. 31,
2013)
EQUITIES :
CNY 3,180,000 (AS OF DEC. 31, 2013)
WEBSITE : www.alsafechina.com
E-MAIL :
alsafechina@163.com
PAYMENT : AVERAGE
MARKET CONDITION : fair
FINANCIAL CONDITION : fair
OPERATIONAL TREND : FAIR
GENERAL REPUTATION : fair
EXCHANGE RATE : CNY 6.24 = 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
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.: 211221004022920 on September 27, 2011.
SC’s Organization Code Certificate No.:
58074687-9
SC’s Tax No.: 211221580746879
SC’s registered capital: CNY 5,000,000
SC’s paid-in capital: CNY 5,000,000
Registration Change Record:-
No significant changes of SC have
been noted in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Meng Qingwei |
10 |
|
Yang Feiyue |
30 |
|
Wu Lianwei |
10 |
|
Li Guoying |
50 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Li
Guoying |
|
Director |
Meng Qingwei |
|
Yang Feiyue |
|
|
Supervisor |
Wu Lianwei |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Meng Qingwei 10
Yang Feiyue 30
Wu Lianwei 10
Li Guoying 50
MANAGEMENT
Li
Guoying, Legal Representative,
Chairman and General Manager
---------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 49
Ø
ID# 210102196501185651
Ø
Qualification:
University
Ø
Working
experience (s):
From 2011 to present, working in SC as legal representative,
chairman and general manager
Director
----------
Meng Qingwei
Yang Feiyue
Supervisor
--------------
Wu Lianwei
BUSINESS OPERATION
SC’s registered business scope includes researching metallic
materials, composite materials and products; selling machinery and equipment,
electrical hardware, electronic products; manufacturing and selling B1 seamless
gas cylinders, B3 specialty gas cylinder; importing and exporting goods and
technology.
SC is
mainly engaged in manufacturing and selling gas cylinder.
Brand: ALSAFE
SC’s
products mainly include:
Aluminium
Gas Cylinder
Specialty
Gas Cylinder
CO2
Air cylinder
Portable
Oxygen Cylinder
Medical
Oxygen Cylinder
Carbon
Fiber Wrapped Cylinder
SCBA
Diving Tank
SCBA
Breathing Apparatus
Lifesaving
Breathing Apparatus
Gas
Cylinder for Entertainment
Aluminium
CO2 Extinguisher
Small
composite gas cylinder
Valves
for Gas Cylinder
Etc.
SC sources its materials 100% from domestic market, mainly Liaoning. SC sells 40% of its products in domestic market, and 60% to overseas market.
The
buying terms of SC include Check, T/T and Credit of 30-60 days. The payment
terms of SC include T/T, L/C and Credit of 30-60 days.
Staff & Office:
--------------------------
SC is
known to have approx. 30
staff at present.
SC rents an area
as its operating office & factory of approx. 2,000 sq. meters at the
heading address.
RELATED COMPANY
SC
is not known to have any subsidiary at present.
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 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.
BANKING
The bank
information of SC is not filed in SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
225 |
222 |
|
|
Notes receivable |
0 |
0 |
|
Accounts
receivable |
0 |
1,645 |
|
Advances to
suppliers |
0 |
0 |
|
Other receivable |
490 |
2,146 |
|
Inventory |
733 |
1,841 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
16 |
115 |
|
|
------------------ |
------------------ |
|
Current assets |
1,464 |
5,969 |
|
Fixed assets |
598 |
1,265 |
|
Construction in
progress |
1,972 |
2,073 |
|
Intangible
assets |
0 |
0 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
4,034 |
9,307 |
|
|
============= |
============= |
|
Short-term loans |
0 |
0 |
|
Notes payable |
0 |
0 |
|
Accounts payable |
-1,275 |
-193 |
|
Wages payable |
0 |
0 |
|
Taxes payable |
-169 |
-407 |
|
Advances from
clients |
0 |
0 |
|
Other payable |
1,500 |
6,727 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
56 |
6,127 |
|
Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
56 |
6,127 |
|
Equities |
3,978 |
3,180 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
4,034 |
9,307 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2013 |
|
Revenue |
2,521 |
|
Cost of sales |
2,516 |
|
Sales expense |
162 |
|
Management expense |
637 |
|
Finance expense |
1 |
|
Profit before
tax |
-799 |
|
Less: profit tax |
0 |
|
-799 |
Important Ratios
=============
|
|
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
*Current ratio |
26.14 |
0.97 |
|
*Quick ratio |
13.05 |
0.67 |
|
*Liabilities
to assets |
0.01 |
0.66 |
|
*Net profit
margin (%) |
-- |
-31.69 |
|
*Return on
total assets (%) |
-- |
-8.58 |
|
*Inventory / Revenue
×365 |
-- |
267 days |
|
*Accounts
receivable/ Revenue ×365 |
-- |
239 days |
|
*Revenue/Total
assets |
-- |
0.27 |
|
*Cost of sales
/ Revenue |
-- |
1.00 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIR
l
The revenue of SC appears
fair in its line.
l
SC’s net profit margin is poor.
l
SC’s return on total assets is fair.
l
SC’s cost of sales is high, comparing with its revenue.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained in a fair
level in 2013.
l
SC’s quick ratio is maintained in a fair level in 2013.
l
The inventory of SC appears large.
l
The accounts receivable of SC appears large.
l
SC has no short-term loans in both years.
l
SC’s revenue is in a
poor level, comparing with the size of its total assets.
LEVERAGE:
FAIR
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is above average.
Overall financial
condition of the SC: Fair.
CONCLUSIONS
SC is considered small-sized in its line with
fair financial conditions. The large amount of inventory and accounts
receivable may be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.58.77 |
|
|
1 |
Rs.99.01 |
|
Euro |
1 |
Rs.80.56 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
|
|
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|
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.