MIRA INFORM REPORT
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Report No. : |
317703 |
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Report Date : |
21.04.2015 |
IDENTIFICATION DETAILS
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Name : |
SHANDONG HOMERUN TIRES CO., LTD. |
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Registered Office : |
Room 2-501, Fortune Center, No. 18 Qinling Road, Laoshan District, Qingdao, Shandong Province, 266061 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
14.12.2011 |
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Com. Reg. No.: |
370212230043599 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in selling tires, rubber products. |
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No of Employees : |
30 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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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. In 2014 the People’s Bank of China (PBOC) doubled 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 2014 stood as the largest economy in the world, surpassing the US that year 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; 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. In 2014 China agreed to begin limiting carbon dioxide emissions by 2030. China implemented several economic reforms in 2014, including legislation allowing local governments to issue bonds, further opening several state-owned enterprises to private investment, loosening the one-child policy, passing harsher pollution fines, and cutting administrative red tape.
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. In 2014 China agreed to begin limiting carbon dioxide emissions by 2030. China implemented several economic reforms in 2014, including legislation allowing local governments to issue bonds, further opening several state-owned enterprises to private investment, loosening the one-child policy, passing harsher pollution fines, and cutting administrative red tape.
|
Source
: CIA |
Company
name & address
Shandong Homerun Tires
CO., LTD.
ROOM 2-501, FORTUNE CENTER, NO. 18 QINLING
ROAD, LAOSHAN DISTRICT, QINGDAO, shandong province, 266061 PR CHINA
TEL: 86 (0) 532-66062025-8044 FAX: 86 (0) 532-66062027
EXECUTIVE
SUMMARY
INCORPORATION DATE : Dec. 14, 2011
REGISTRATION NO. : 370212230043599
REGISTERED LEGAL FORM : Limited liabilities
company
STAFF STRENGTH :
30
REGISTERED CAPITAL : CNY 20,000,000
BUSINESS LINE : TRADING
TURNOVER :
CNY 61,850,000 (unaudited, AS OF DEC. 31, 2014)
EQUITIES :
CNY 19,590,000 (unaudited, AS OF DEC. 31, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : Fairly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY 6.2027 = 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: the was the
former one.
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 Dec. 14, 2011.
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 international trade, entrepot trade of tires, rubber
products, machinery, electromechanical equipment and products, handicrafts,
construction materials, hardware, daily necessities, trade among enterprises in
the region and processing and finishing under the trade items; importing and
exporting goods and technology.
SC is mainly
engaged in selling tires, rubber products.
Mr. Guan Zheng is
legal representative, chairman and general manager of SC at present.
SC is known to
have approx. 30 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Qingdao. SC’s
employee
refused to release the detailed information of the premise.
http://www.homeruntire.com/ The design is professional and the content is
well organized. At present it is in English and other versions.
Email: info@homeruntire.com
Changes
of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
2014-4-23 |
Registered capital |
CNY 500,000 |
Present amount |
|
2014-7-1 |
Company’s name |
Qingdao General Homerun Tires Co., Ltd. (literal translation) |
Present one |
Organization Code: 587805595
For the past two years there is no record of litigation.
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Sun Jigen 40
Guan Zheng 60
l
Legal representative, chairman and general
manager:
Mr. Guan Zheng 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 Qingdao Lushi Tire Co., Ltd. (in Chinese pinyin) and Qingdao Fuyuan
Xincheng Tire Co., Ltd. (in Chinese pinyin) as legal representative.
l
Supervisor:
Sun Jigen
SC is mainly engaged
in selling tires, rubber products.
SC’s products mainly include: all kinds of Radial Tires, including
Passenger Car tire, Light Truck Tires, Truck and Bus tires, etc.
SC sources its materials 100% from domestic
market. SC sells 20% of its products in domestic market, and 80% 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.
Note: SC’s management declined to release
its main clients and suppliers.
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TRADEMARKS & PATENTS |
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Registration No. |
12213793 |
13696119 |
12267449 |
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Registration Date |
Aug. 7, 2014 |
Feb. 21, 2015 |
Aug. 21, 2014 |
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Trademark Design |
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Qingdao
Lushi Tire Co., Ltd. (in Chinese pinyin)
==========================
Registration
no.: 370212230100961
Legal
representative: Guan Zheng
Incorporation
date: 2014-12-22
Qingdao
Fuyuan Xincheng Tire Co., Ltd. (in Chinese pinyin)
==============================
Registration
no.: 370203230035952
Legal
representative: Guan Zheng
Incorporation
date: 2010-03-05
Branch:
Shandong
Homerun Tires Co., Ltd. Laoshan Branch
===============================
Registration
no.: 370220330001321
Principal:
Sun Jigen
Incorporation
date: 2014-10-31
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 declined to
release its banking details.
Balance Sheet
Unit: CNY’000
|
|
As of Dec. 31, 2014 |
|
Cash & bank |
19,930 |
|
Inventory |
190 |
|
Accounts
receivable |
1,840 |
|
Bills receivable |
0 |
|
Other Accounts
receivable |
40,040 |
|
Advances to
suppliers |
23,120 |
|
To be
apportioned expense |
0 |
|
Other current
assets |
0 |
|
|
------------------ |
|
Current assets |
85,120 |
|
Fixed assets net
value |
1,810 |
|
Long-term
investment |
0 |
|
Intangible and
other assets |
0 |
|
|
------------------ |
|
Total assets |
86,930 |
|
|
============= |
|
Short loans |
39,050 |
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Accounts payable |
0 |
|
Advance from
customers |
0 |
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Other Accounts
payable |
28,330 |
|
Notes payable |
0 |
|
Taxes payable |
-40 |
|
Withdraw the
expenses in advance |
0 |
|
Other current
liabilities |
0 |
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|
------------------ |
|
67,340 |
|
|
Long term
liabilities |
0 |
|
Other
liabilities |
0 |
|
|
------------------ |
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Total
liabilities |
67,340 |
|
Equities |
19,590 |
|
|
------------------ |
|
86,930 |
|
|
|
============= |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31, 2014 |
|
Turnover |
61,850 |
|
Cost of goods sold |
55,720 |
|
Taxes and additional of main
operation |
0 |
|
Sales expense |
2,780 |
|
Management expense |
2,470 |
|
Finance expense |
730 |
|
Profit before
tax |
170 |
|
Less: profit tax |
0 |
|
Profits |
170 |
Note: The above Financial Report hasn’t been
audited.
Important Ratios
=============
|
|
As
of Dec. 31, 2014 |
|
*Current ratio |
1.26 |
|
*Quick ratio |
1.26 |
|
*Liabilities
to assets |
0.77 |
|
*Net profit margin
(%) |
0.27 |
|
*Return on
total assets (%) |
0.20 |
|
*Inventory
/Turnover ×365 |
2 days |
|
*Accounts
receivable/Turnover ×365 |
11 days |
|
*Turnover/Total
assets |
0.71 |
|
* Cost of
goods sold/Turnover |
0.90 |
PROFITABILITY:
AVERAGE
l The turnover of SC
appears average in its line.
l SC’s net profit
margin is average.
l SC’s return on
total assets is average.
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’s short-term loan appears large in 2014.
l
SC’s turnover is in a fair level, comparing with
the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is fairly high.
l
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. The large amount of short loans could be a threat to SC’s financial
condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 62.56 |
|
|
1 |
Rs. 93.56 |
|
Euro |
1 |
Rs. 67.49 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
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|
Report Prepared
by : |
DPT |
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.