MIRA
INFORM REPORT
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Report Date : |
29.05.2014 |
IDENTIFICATION DETAILS
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Name : |
HENAN LIMING
HEAVY INDUSTRY SCIENCE & TECHNOLOGY CO., LTD. |
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Registered Office : |
15 Dingxiang 11 Road National Hi Tech industry Development Zone
Zhengzhou |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
16.11.2009 |
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Com. Reg. No.: |
410100000033161 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Engaged in researching, developing, manufacturing, processing, and
selling electric power environmental protection desulfurization system
equipment, refined powder system of mechanical equipment, mining equipment,
chemical equipment, metallurgical machinery equipment, electronic products,
and transmission gear box; importing and exporting commodities and
technology. Subject product
ranges includes : · Crushing Equipment Sand Making Equipment Grinding Equipment The Mobile Crushing Station Ancillary Equipment |
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No of Employees : |
1,209 (Approximately) |
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, 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.
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Source : CIA |
Company name & address
Henan Liming Heavy
Industry Science & Technology Co., Ltd.
no. 169 kexue avenue, hi-tech development zone
zhengzhou, henan province 450001 PR CHINA
TEL: 86 (0) 371-67942899/67992899/67993088/67983878/67993988
FAX: 86 (0) 371-67992699
***Note: The (15
Dingxiang 11 Road National Hi Tech industry Development Zone Zhengzhou) is SC’s
registered one.
EXECUTIVE SUMMARY
Date of Registration : november 16, 2009
REGISTRATION NO. : 410100000033161
LEGAL FORM : shares limited company
CHIEF EXECUTIVE :
yang songke (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL :
cny 11,000,000
staff : 1,209
BUSINESS CATEGORY :
r & d & manufacturing & processing & trading
Revenue : CNY 589,130,000 (AS OF DEC. 31, 2013)
EQUITIES : CNY 149,640,000 (AS OF DEC. 31, 2013)
WEBSITE : www.lmlq.com
E-MAIL : info@limingco.com
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY GOOD
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION : average
EXCHANGE RATE : CNY 6.25 = 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 shares limited company of PRC with State Administration of
Industry & Commerce (SAIC) under registration No.: 410100000033161.
SC’s Organization Code Certificate
No.: 69731727-7
SC’s registered capital: cny 11,000,000
SC’s paid-in capital: cny 11,000,000
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:-
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Name of Shareholder (s) |
% of Shareholding |
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Yang Meng |
30 |
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Yang Songke |
70 |
SC’s Chief Executives:-
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Position |
Name |
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Legal Representative, Chairman
and General Manager |
Yang Songke |
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Director |
Qiao Jingliang |
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Chen Xiaozhuan |
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Yang Songwei |
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Bai Yinghui |
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Supervisor |
Chai Xuanyang |
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Yang Haitao |
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Jiang Jianling |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name
%
of Shareholding
Yang Meng 30
Yang Songke 70
MANAGEMENT
Yang Songke , Legal
Representative, Chairman and General Manager
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Ø
Gender: M
Ø
Working
experience (s):
At present, working in SC as legal representative, chairman
and general manager
Director
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Qiao Jingliang
Chen Xiaozhuan
Yang Songwei
Bai Yinghui
Supervisor
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Chai Xuanyang
Yang Haitao
Jiang Jianling
BUSINESS OPERATION
SC’s registered business scope includes researching, developing,
manufacturing, processing, and selling electric power environmental protection
desulfurization system equipment, refined powder system of mechanical
equipment, mining equipment, chemical equipment, metallurgical machinery
equipment, electronic products, and transmission gear box; importing and
exporting commodities and technology.
SC is
mainly engaged in researching, developing, manufacturing, processing, and selling heavy
industrial machinery and equipment.
SC’s products mainly include:
· Crushing equipment
Sand
making equipment
Grinding
equipment
The
mobile crushing station
Ancillary
equipment
Brand: Liming.
SC sources its materials 80% from domestic
market, and 20% from overseas market. SC sells 65% of its products in domestic
market, and 35% 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.
Staff & Office:
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SC is
known to have approx. 1,209 staff
at present.
SC
rents an area as its operating office & factory of approx. 26,000 sq.
meters at the heading address.
RELATED COMPANY
SC’s
subsidiary information is not available 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
Basic Bank:
Bank
of Communications Zhengzhou Hi-tech Development Zone Sub-branch
AC#: 411060600018120213202
FINANCIALS
Financial Summary
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Unit: CNY’000 |
As
of Dec. 31, 2013 |
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Total assets |
337,580 |
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Total
liabilities |
187,940 |
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Equities |
149,640 |
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Revenue |
589,130 |
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Profits |
72,020 |
Important Ratios
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As
of Dec. 31, 2013 |
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*Liabilities
to assets |
0.56 |
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*Net profit
margin (%) |
12.22 |
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*Return on
total assets (%) |
21.33 |
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*Revenue /
Total assets |
1.75 |
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.
LIQUIDITY:
AVERAGE
l
SC’s revenue is in an
average level, comparing with the size of its total assets.
LEVERAGE:
AVERAGE
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Good.
CONCLUSIONS
SC is considered medium-sized in its line with fairly good
financial conditions.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.58.84 |
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UK Pound |
1 |
Rs.98.40 |
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Euro |
1 |
Rs.80.03 |
INFORMATION DETAILS
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Analysis Done by
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DIV |
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Report Prepared
by : |
PDT |
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.