MIRA
INFORM REPORT
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Report Date : |
05.09.2014 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
15.08.2006 |
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Com. Reg. No.: |
500381000030878 |
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Legal Form : |
One-Person Limited Liabilities Company |
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Line of Business : |
Manufacturing and Selling Copper Tubes and Metal Products. |
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No of Employees : |
560 |
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 : |
Slow but correct |
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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 – June 01, 2014
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Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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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.
|
Source
: CIA |
Company name & address
CHONGQING
LONGYU PRECISE COPPER TUBE CO., LTD.
NO. 88 SHUANGFU
ROAD, SHUANGFU INDUSTRY PARK
JIANGJIN
DISTRICT, CHONGQING 402247 PR CHINA
TEL: 86 (0)
23-47262355/47262356
FAX: 86 (0)
23-47262358/47261609
EXECUTIVE SUMMARY
Date of Registration : august 15, 2006
REGISTRATION NO. : 500381000030878
LEGAL FORM : ONE-PERSON Limited liabilities company
CHIEF EXECUTIVE :
LI CHANGJIE (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 200,150,000
staff :
560
BUSINESS CATEGORY : MANUFACTURING & TRADING
Revenue :
CNY 3,003,410,000 (AS OF DEC. 31, 2013)
EQUITIES :
CNY 235,350,000 (AS OF DEC. 31, 2013)
E-MAIL :
N/A
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.15 = 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 one-person limited liabilities company of PRC with
State Administration of Industry & Commerce (SAIC) under registration No.: 500381000030878 on August 15, 2006.
SC’s Organization Code Certificate No.:
79071611-7
SC’s registered capital: CNY 200,150,000
SC’s paid-in capital: CNY 200,150,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Registration No. |
5000001805921 |
500381000030878 |
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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|
100 |
SC’s Chief Executives:-
|
Position |
Name |
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Legal Representative and Chairman |
Li Changjie |
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Vice Chairman |
Chang Xin |
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General Manager |
Xiong Shuangkui |
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Director |
Ji Xuefeng |
|
Zhou Yongli |
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|
Feng Fang |
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Supervisor |
Yu Chaohui |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Guangdong Longfeng Precise Copper Tube Co., Ltd. 100
-----------------------------------
Registration No.: 440400400000942
Date of Registration:
Legal Representative: Li Changjie
Registered Capital: USD 32,000,000
Address: Shuanglin Road, Zhuhai Street, Jinwan District, Zhuhai City,
Guangdong Province
Tel.: 86 (0) 756-7261982
MANAGEMENT
Li Changjie , Legal Representative and Chairman
---------------------------------------------------------------------------
Gender: M
Age: 68
Qualification: MBA Degree
Working experience (s):
At present, working in SC as legal representative and chairman
Also working in Guangdong Longfeng Precise Copper Tube Co., Ltd., Golden
Dragon Precise Copper Tube Group Inc., Shanghai Longyang Precise Compound
Copper Tube Co., Ltd., etc. as legal representative
Chang Xin, Vice
Chairman
-------------------------------------------
Gender: M
Qualification: University
Working experience (s):
At present, working in SC as vice chairman
Xiong Shuangkui, General Manager
----------------------------------------------------------
Gender: M
ID# 412821197009223610
Age: 44
Qualification: Doctor Degree
Working experience (s):
At present, working in SC as general manager, also working in Chongqing
Longyu Trade & Development Co., Ltd. as general manager
Director
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Ji Xuefeng
Zhou Yongli
Feng Fang
Supervisor
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Yu Chaohui
BUSINESS OPERATION
SC’s registered business scopes include manufacturing and selling copper
tubes and metal products.
SC is mainly engaged in manufacturing and selling copper tubes.
SC’s products mainly include: high precise plain copper tube applied to
air conditioner and refrigeration equipments, inner grooved copper tube for
high-efficient heat transmission, high clean plain copper tube for
fluorine-free coolant storage, plain copper tube and section copper tube for
gas water heater and seamless copper tube for cable
SC sources its materials 100% from domestic market. SC sells 90% of its
products in domestic market, and 10% to overseas market.
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.
Staff &
Office:
--------------------------
SC is known to have approx. 560
staff at present.
SC owns an area as its operating office and factory, but the detailed
information is unknown.
RELATED COMPANY
Golden Dragon Precise Copper Tube Group Inc.
-----------------------------------------
Date of Registration: Jul. 24, 2000
Registration No.: 410000100013025
Legal Form: Shares Limited Co.
Chief Executive: Mr. Li Changjie
Registered Capital: CNY 420,000,000
Web: www.gdcopper.com
Tel.: 86 (0) 373-2682828
Fax: 86 (0) 373-2682689
Add.: No. 191, Renmin West Road, Xinxiang, Henan Province
Shanghai Longyang Precise Compound Copper Tube Co., Ltd.
------------------------------------------
Registration No.: 310115400076879
Date of Registration:
Chief Executive: Li Changjie
Registered Capital: USD 35,000,000
Shanghai Longyang Copper Tube Sales Co., Ltd.
------------------------------------
Registration No.: 310115001820101
Date of Registration:
Chief Executive: Qu Shaojie
Registered Capital: CNY 20,000,000
SC is known to
have a subsidiary at present,
--------------------------------------------------------
Chongqing Longyu Trade & Development Co., Ltd.
------------------------------------
Date of Registration: October 15, 2009
Registration No.: 500381000024812
Legal Form: Limited Liabilities
Company
Chief Executive: Xiong Shuangkui
Registered Capital: CNY 30,000,000
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:
Agricultural Bank of China Jiangjin Sub-branch
AC#: 140101040004571
FINANCIALS
Balance Sheet
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Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
775,646 |
218,130 |
319,110 |
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Held for trading
financial assets |
835 |
0 |
0 |
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Notes receivable |
256,057 |
23,210 |
0 |
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Accounts receivable |
242,487 |
369,410 |
375,370 |
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Advances to suppliers |
42,155 |
129,600 |
453,630 |
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Other receivable |
33,115 |
1,470 |
1,420 |
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Inventory |
172,219 |
112,850 |
106,330 |
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Deferred expenses |
0 |
0 |
0 |
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Other current assets |
42,166 |
29,530 |
45,250 |
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------------------ |
------------------ |
------------------ |
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Current assets |
1,564,680 |
884,200 |
1,301,110 |
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Long-term investment |
30,000 |
30,000 |
30,000 |
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Fixed assets |
352,215 |
479,120 |
421,160 |
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Construction in progress |
121,953 |
0 |
0 |
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Intangible assets |
38,975 |
38,110 |
37,190 |
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Long-term prepaid expenses |
0 |
0 |
0 |
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Deferred income tax assets |
354 |
380 |
370 |
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Other non-current assets |
0 |
0 |
0 |
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------------------ |
------------------ |
------------------ |
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Total assets |
2,108,177 |
1,431,810 |
1,789,830 |
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============= |
============= |
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Short-term loans |
1,376,575 |
993,500 |
939,000 |
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Notes payable |
8,133 |
105,990 |
478,370 |
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Accounts payable |
45070 |
25,610 |
57,330 |
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Wages payable |
244 |
2,690 |
2,810 |
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Taxes payable |
7,343 |
7,290 |
7,540 |
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Interest payable |
7,915 |
0 |
0 |
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Advances from clients |
2,350 |
1,810 |
1,900 |
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Other payable |
35,222 |
29,520 |
28,980 |
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Other current liabilities |
378,000 |
1,010 |
7,990 |
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------------------ |
------------------ |
------------------ |
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Current liabilities |
1,860,852 |
1,167,420 |
1,523,920 |
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Non-current liabilities |
33,062 |
31,970 |
30,560 |
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------------------ |
------------------ |
------------------ |
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Total liabilities |
1,893,914 |
1,199,390 |
1,554,480 |
|
Equities |
214,263 |
232,420 |
235,350 |
|
|
------------------ |
------------------ |
------------------ |
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Total liabilities & equities |
2,108,177 |
1,431,810 |
1,789,830 |
|
|
============= |
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
Revenue |
2,855,077 |
2,709,160 |
3,003,410 |
|
Cost of sales |
2,731,854 |
2,587,460 |
2,891,930 |
|
Taxes and surcharges |
1,892 |
5,080 |
3,220 |
|
Sales expense |
8,553 |
8,030 |
13,580 |
|
Management expense |
20,516 |
21,370 |
16,470 |
|
Finance expense |
80,136 |
70,590 |
76,730 |
|
Non-operating income |
2,420 |
3,920 |
3,100 |
|
Non-operating expense |
60 |
710 |
120 |
|
Profit before tax |
11,958 |
18,310 |
3,750 |
|
Less: profit tax |
0 |
0 |
830 |
|
11,958 |
18,310 |
2,920 |
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
*Current ratio |
0.84 |
0.76 |
0.85 |
|
*Quick ratio |
0.75 |
0.66 |
0.78 |
|
*Liabilities to assets |
0.90 |
0.84 |
0.87 |
|
*Net profit margin (%) |
0.42 |
0.68 |
0.10 |
|
*Return on total assets (%) |
0.57 |
1.28 |
0.16 |
|
*Inventory / Revenue ×365 |
23 days |
16 days |
13 days |
|
*Accounts receivable/ Revenue ×365 |
32 days |
50 days |
46 days |
|
*Revenue / Total assets |
1.35 |
1.89 |
1.68 |
|
*Cost of sales / Revenue |
0.96 |
0.96 |
0.96 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
The revenue of SC appears fairly good in its line.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of sales is fairly high, comparing with its revenue.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in an average level.
SC’s quick ratio is maintained in an average level.
The inventory of SC appears average.
The accounts receivable of SC is maintained in an average level.
The short-term loans of SC appear large.
SC’s revenue is in an average level, comparing with the size of its
total assets.
LEVERAGE: FAIR
The debt ratio of SC is fairly high.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable financial
conditions. The large amount of short-term loans may be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.45 |
|
|
1 |
Rs.99.45 |
|
Euro |
1 |
Rs.79.46 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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Report Prepared
by : |
TPT |
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 |
|
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 |
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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.