MIRA INFORM REPORT
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Report Date : |
27.05.2014 |
IDENTIFICATION DETAILS
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Name : |
NINGBO TIP RUBBER TECHNOLOGY Co., Ltd. |
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Registered Office : |
No. 5, Jinlong Road, Taoyuan Street, Ninghai County, Ningbo, Zhejiang Province, 315600 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
13.11.2009 |
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Com. Reg. No.: |
330226000050610 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing and Selling of Rubber and Plastics. |
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No. of Employees : |
500 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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
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Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
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China |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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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 |
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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.
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Source
: CIA |
Company name and address
NINGBO TIP RUBBER TECHNOLOGY Co., Ltd.
No. 5, jinlong
road, taoyuan street,
ninghai county,
ningbo, zhejiang PROVINCE, 315600 PR CHINA
TEL: 86 (0) 574-65332990 FAX: 86 (0) 574-65332996
EXECUTIVE SUMMARY
INCORPORATION DATE : nov. 13, 2009
REGISTRATION NO. : 330226000050610
REGISTERED LEGAL
FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH : 500
REGISTERED CAPITAL :
CNY 10,000,000
BUSINESS LINE :
MANUFACTURING & TRADING
TURNOVER : CNY 236,260,000 (UNaudited, AS OF DEC. 31, 2013)
EQUITIES : CNY 63,770,000 (UNaudited, AS OF DEC. 31, 2013)
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION
: fairly good
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.24 = 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 address “Taoyuan Street” was formerly named
“Xinxing Industrial Zone C”.
According to its website, SC is also known as Ningbo Temple
Rubber Technology Co., LTD.
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 Nov. 13, 2009.
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 researching, manufacturing and processing rubber and plastics; manufacturing and processing vehicle parts, motorcycle parts, hardware products, plastic machinery, machinery parts and mould; import and export of various goods and technologies, but excluding the goods forbidden by the government.
SC is mainly engaged in manufacturing and selling rubber and plastics.
Mr. You Jianyi is legal representative, chairman and general manager of SC at present.
SC is known to have approx. 500 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 Ningbo. The detailed information of the premise is unspecified.
http://www.nbtip.com/ The design is professional and the content is
well organized. At present it is in Chinese, English and Japanese versions.
Email: tip@chtip.com
No significant events or changes were found
during our checks with the local Administration for Industry and Commerce.
Tax Registration Certificate No.:
330226695095607
Organization Code: 695095607
Subject passed the annual inspection of 2012 with
Administration for Industry & Commerce.
For the past two years there is no record of
litigation.
MAIN SHAREHOLDERS:
Name % of Shareholding
You Jianyi 90
Wang Guohong 10
l
Legal representative, Chairman and General manager:
Mr. You Jianyi is currently responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as legal representative,
chairman and general manager;
Also working in Ningbo Temple Automobile Components
Co., Ltd. and Shanghai Tip Automobile Parts Co., Ltd., etc. as legal
representative
l
Supervisor:
Wang Guohong
SC is mainly engaged in manufacturing and selling rubber and plastics.
SC’s products mainly include: Hose Structure, Fuel Hose & Assembly, Water
Hose Assembly, etc.
SC sources its
materials 90% from domestic market, and 10% 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 Check, T/T, L/C
and Credit of 30-60 days.
Note: SC’s management declined to release
its customer and supplier details.
Ningbo Temple Automobile Components Co.,
Ltd.
---------------------------------------
Registered no.:
330226000000926
Legal representative: You
Jianyi
Incorporation date:
Shanghai Tip Automobile Parts Co.,
Ltd.
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Registered no.: 310228000999629
Legal representative: You
Jianyi
Incorporation date:
Ningbo TIP Polymer Co., Ltd
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Registered no.: 330226000105837
Legal representative: You
Jianyi
Incorporation date:
Etc.
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’s management declined to release its bank
details.
Balance Sheet
Unit: CNY’000
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as
of Dec. 31, 2013 |
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Cash & bank |
10,850 |
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Notes receivable |
2,490 |
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Inventory |
20,180 |
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Accounts receivable |
40,090 |
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Advances to suppliers |
0 |
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Other receivables |
32,990 |
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Other current assets |
720 |
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Current assets |
107,320 |
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Fixed assets net value |
9,870 |
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Projects under construction |
830 |
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Long term investment |
0 |
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Intangible assets |
5,940 |
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Other assets |
0 |
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Total assets |
123,960 |
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============= |
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Short loans |
0 |
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Notes payable |
1,100 |
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Accounts payable |
37,420 |
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Other payable |
14,160 |
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Taxes payable |
5,240 |
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Accrued payroll |
2,190 |
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Other current liabilities |
80 |
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Current liabilities |
60,190 |
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Long term liabilities |
0 |
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Total liabilities |
60,190 |
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Equities |
63,770 |
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Total liabilities & equities |
123,960 |
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Income Statement
Unit: CNY’000
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as of Dec. 31,
2013 |
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Turnover |
236,260 |
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Cost of goods sold |
164,120 |
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Sales expense |
5,740 |
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Management expense |
17,650 |
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Finance expense |
1,330 |
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Profit before tax |
47,620 |
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Less: profit tax |
7,140 |
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Profits |
40,480 |
Note:
The above financial records have not been audited.
Important Ratios
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as
of Dec. 31, 2013 |
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*Current ratio |
1.78 |
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*Quick ratio |
1.45 |
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*Liabilities to assets |
0.49 |
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*Net profit margin (%) |
17.13 |
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*Return on total assets (%) |
32.66 |
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*Inventory /Turnover ×365 |
32 days |
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*Accounts receivable/Turnover ×365 |
62 days |
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*Turnover/Total assets |
1.91 |
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* Cost of goods sold/Turnover |
0.69 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in its line.
l
SC’s net profit margin is good.
l
SC’s return on total assets is good.
l
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal 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 has no short-term loan in 2013.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE:
FAIRLY GOOD
l
The debt ratio of SC is fairly low.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly good.
SC is considered medium-sized in its line
with fairly good financial conditions.
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
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US Dollar |
1 |
Rs.58.59 |
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1 |
Rs.98.66 |
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Euro |
1 |
Rs.79.81 |
INFORMATION DETAILS
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Analysis Done by
: |
SUB |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
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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 |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
-- |
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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.