MIRA
INFORM REPORT
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Report Date : |
20.09.2014 |
IDENTIFICATION DETAILS
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Name : |
SUZHOU YAMATO MEDICAL
MATERIALS CO., LTD. |
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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 : |
09.05.2002 |
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Com. Reg. No.: |
320584400003978 |
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Legal Form : |
Chinese-Foreign Contractual Joint Venture |
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Line of Business : |
Manufacturing absorbent cotton products and gauze products, selling
own products, purchasing and exporting related products. |
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No of Employees : |
100 |
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 1, 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 |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
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 & address
SUZHOU YAMATO MEDICAL MATERIALS CO., LTD.
NO. 9 SHEXING ROAD, BEISHE TOWN, WUJIANG CITY, JIANGSU, 215214 PR CHINA
TEL: 86 (0) 512-63242185/13913702272
FAX: 86 (0) 512-63241262
EXECUTIVE SUMMARY
INCORPORATION DATE : May 9, 2002
REGISTRATION NO. : 320584400003978
REGISTERED LEGAL FORM : Chinese-foreign contractual joint venture
enterprise
CHIEF EXECUTIVE :
Mr. shen qi’nan (CHAIRMAN)
STAFF STRENGTH :
100
REGISTERED CAPITAL : USD 800,000
BUSINESS LINE :
MANUFACTURING AND TRADING
TURNOVER :
CNY 27,490,000 (AS OF DEC. 31,
2013)
EQUITIES :
CNY 24,920,000 (AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.1449= 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
SC was registered as a Chinese-foreign contractual joint venture enterprise
at local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license).
Company Status: Chinese-foreign contractual joint
venture enterprise This form of business in PR
China is defined as a legal person. It is a limited co. jointly invested by
one or more foreign companies and one or more PR China controlled companies
within the territories of PR China. The investing parties are free to agree
on the proportion of capital investment, method of profit distribution and
liabilities bearing according to the provisions of the contract. The joint
venture usually has a limited duration of 10 to 50 years.
SC’s registered business scope includes manufacturing absorbent cotton
products and gauze products, selling own products, purchasing and exporting
related products.
SC is mainly engaged in manufacturing and selling textile products.
Mr. Shen Qi’nan is legal representative and chairman of SC at present
SC is known to have approx. 100 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 Wujiang.
Detailed premise information is unspecified.
www.likangcorp.com
The web belongs to Jiangsu Likang Medical Products Co., Ltd. The design is
professional and the content is well organized. At present it is in Chinese and
English versions.
No significant events or changes were found during our checks with local
AIC.
Subject passed the annual inspection of 2012 with Administration for
Industry & Commerce.
Organization code: 736517854
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name
%
of Shareholding
Japan Yamato Workshop Co., Ltd. (literal translation) 25
Jiangsu Likang Medical Products Co., Ltd. 75
Jiangsu Likang Medical Products Co., Ltd.
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Reg. No.: 320584000000663
Legal representative: Shen Qi’nan
Incorporation date:
Japan Yamato Workshop Co., Ltd. (literal translation)
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Tel 06-6392-1731
Fax 06-6391-0632
Legal
Representative and Chairman:
Mr. Shen Qi’nan ID# 32052519450613XXXX, born in 1945, is currently
responsible for the overall management of SC.
Working
Experience(s):
At present Working
in SC as legal representative and chairman
Also working Jiangsu Likang Medical Products Co., Ltd., Suzhou Hengmao
Textile Co., Ltd., Jiangsu Likang Import & Export Co., Ltd., etc. as legal
representative
Vice
Chairman:
Mr. Mingchuan Taihong (in Chinese Pinyin), Japanese, is currently
responsible for the daily management of SC.
Working Experience(s):
At present Working
in SC as vice chairman
General
Manager & Director:
Shen Yonghong is currently responsible for the daily management of SC.
Working Experience(s):
At present Working
in SC as general manager and director
Director:
Zhang Shudong
Vice
General Manager:
Ma Yuchun
SC is mainly engaged in manufacturing and selling textile products.
SC’s main products include medical gauze products, absorbent cotton
products, etc.
SC sources its materials 100% from domestic market. SC sells its
products 100% to overseas market, mainly to Japan.
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.
Note: SC refused to release its major suppliers and clients.
Suzhou Hengmao Textile Co., Ltd.
Jiangsu Likang Import & Export Co., Ltd.
Suzhou Hengchang Medical Material Co., Ltd.
Huaian Kanghe Medical Material Co., Ltd.
Wujiang Medical Gauze Refining & Bleaching Co., Ltd.
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 refused to release its banking information.
Financial
Summary
Unit: CNY’000
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As of Dec. 31,
2013 |
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Total assets |
29,760 |
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Total liabilities |
4,840 |
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Equities |
24,920 |
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27,490 |
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Cost of goods
sold |
25,010 |
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Profits |
630 |
Note: SC refused to
release its detailed financial statements.
Important
Ratios
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As of Dec. 31,
2013 |
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*Liabilities to assets |
0.16 |
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*Net profit margin (%) |
2.29 |
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*Return on total assets (%) |
2.12 |
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*Turnover/Total assets |
0.92 |
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* Cost of goods sold/Turnover |
0.91 |
PROFITABILITY:
AVERAGE
The turnover of SC appears average in its line.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of goods sold is average, comparing with its turnover.
SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is low.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
SC is considered medium-sized in its line with fairly stable financial
conditions. Taking into consideration of SC’s general performance and operation
size.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.60.81 |
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1 |
Rs.100.06 |
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Euro |
1 |
Rs.78.47 |
INFORMATION DETAILS
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Analysis Done by
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DIV |
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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 |
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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.