MIRA INFORM REPORT
|
Report No. : |
319067 |
|
Report Date : |
29.04.2015 |
IDENTIFICATION DETAILS
|
Name : |
JIANGSU RUTONG PETRO-MACHINERY CO., LTD. |
|
|
|
|
Registered Office : |
No. 33 Huaihe Road, New Zone, Rudong Economic Development Zone, Rudong County, Nantong, Jiangsu Province, 226400 PR |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
12.10.1989 |
|
|
|
|
Com. Reg. No.: |
320623000111804 |
|
|
|
|
Legal Form : |
Shares Limited Co. |
|
|
|
|
Line of Business : |
Subject is mainly
engaged in manufacturing and sales of machinery equipment. |
|
|
|
|
No. of Employees : |
795 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
|
|
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) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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. 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 and address
JIANGSU RUTONG
PETRO-MACHINERY CO., LTD.
NO. 33 HUAIHE ROAD, NEW ZONE, RUDONG ECONOMIC DEVELOPMENT ZONE, RUDONG
COUNTY, NANTONG, JIANGSU PROVINCE, 226400 PR CHINA
TEL: 86 (0) 513-84512580 FAX:
86 (0) 513-84523102
EXECUTIVE
SUMMARY
INCORPORATION DATE :
OCT. 12, 1989
REGISTRATION NO. :
320623000111804
REGISTERED LEGAL FORM :
SHARES LIMITED CO.
CHIEF EXECUTIVE :
MS. CAO CAIHONG (CHAIRMAN)
STAFF STRENGTH :
795
REGISTERED CAPITAL : CNY 152,520,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 304,169,000 (CONSOLIDATED,
AS OF DEC. 31, 2013)
EQUITIES :
CNY 477,962,000 (CONSOLIDATED, AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY GOOD
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.2156 = USD 1
HISTORY
Note: The given telephone number could not be connected.
SC was registered as a Shares limited co. at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license).
Company
Status: Shares limited co.
This form of business in PR China is defined as a legal person. Its
registered capital is divided into shares of equal par value and the co. raises
capital by issuing share certificates by promotion or by public offer.
Shareholders bear limited liability to the extent of shareholding, and the co.
is liable for its debts only to the extent of its total assets. The co has
independent property of legal person and enjoys property rights of legal
person. The characteristics of the shares limited co. are as follows:
The establishment of the co. requires at least two promoters and no more
than 200, half of whom shall be domiciled in China.. Natural person are allowed
to serve as promoters.
The minimum registered capital of a co. is CNY 5M. while that of the co.
with foreign investment is CNY 5M. The total capital of a co. which propose to
apply for publicly listed must be no less than CNY 30M.
The board of directors must consist of five to nineteen directors.
If the co. raises capital by public offer, the promoters must not
subscribe less than 35% of the total shares. the promoters’ shares are
restricted to transfer- within one year of the offer.
A state-owned enterprise that is restructured into a shares limited co.
must comply with the conditions & requirements specified under the law
& administrative rule.
SC’s registered business scope includes R&D, design, manufacture,
service and sales of petroleum machinery equipment, tools and accessories;
manufacture and sales of general machinery, prestressed anchor system and
derived products, steel castings; heat treatment processing; mechanical repair;
import and export of goods and technology (if needed with permit).
SC is mainly engaged in manufacturing and sales of machinery equipment.
Ms. Cao Caihong is legal representative,
general manager and chairman of SC at present.
SC is known to
have approx. 795 at present.
SC is currently
operating at the above stated address, and this address houses its operating office
and factory in the economic development zone of Nantong. Detailed premise
information is not available at present.
WEB
SITE
http://www.rutong.com/ The design is professional and the content is well organized. At present it is both in Chinese and English versions.
Email: rdty@rutong.com
KEY
EVENTS/RECENT DEVELOPMENT
SC’s predecessor is
Rudong County General Machinery Factory
Changes of its registered information:
|
Date of change |
Item |
Before the
change |
After the
change |
|
Unknown |
Registration no. |
3206231100275 |
Present one |
|
2011 |
Company’s name |
Jiangsu Rudong
General Machinery Co., Ltd. |
|
|
Legal form |
Limited
liabilities co. |
Organization Code: 138654234
OWNERSHIP/MANAGEMENT
MAIN SHAREHOLDERS:
Name Amount
(CNY’0000) %
of Shareholding
Cao Caihong 3,006.98 19.72
Yao Zhong 744 4.88
Guan Xin 744 4.88
Xu Bobing 1,049.04 6.88
Shi Xiufei 744 4.88
Bao Yinliang 744 4.88
Shi Jianxin 744 4.88
Other 29 shareholders 7,475.98 49.01
MANAGEMENT
- Legal Representative, General Manager and Chairman:
Ms. Cao Caihong, born in 1950, with junior college
education, senior economist. She is currently responsible for the overall and
daily management of SC.
Working
Experience(s):
At present Working in SC as chairman, general
manager and legal representative.
Also working in
Jiangsu Rutong Casting Co., Ltd. and Huitong Petro-Machinery (Nantong) Co.,
Ltd. as legal representative.
- Directors:
Bao Yinliang
Xu Bobing
Zhang Youfu
- Supervisors:
Guan Xin
Zhu Jianhua
Sun Weizheng
SC is mainly
engaged in manufacturing and sales of machinery equipment.
SC’s products
mainly include:
Elevator Series
Elevator/Spiders
Elevator Links
Hook Blocks
Fill up and
Circulate Tools
SC sources its
materials 80% from domestic market and 20% from the overseas market. SC sells
25% of its products to overseas market and 75% in domestic market.
The buying terms of
SC include Check, L/C, 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 main suppliers and customers.
TRADEMARKS &
PATENTS
Registration No.:
6818764
Registration Date:
2010-4-14
Trademark Design: 
Registration No.:
3145771
Registration Date:
2003-10-14
Trademark Design:
Registration No.:
3659213
Registration Date:
2005-7-7
Trademark Design:
RELATED
COMPANIES
SC is known to
invest in the following companies:
Rudong Jintong Petro-Machinery Co., Ltd. (In
Chinese Pinyin)
==============================
Incorporation Date: 2007-03-22
Registration No.: 320623000138020
Chief Executive: Xu Bobing (Legal
representative)
Jiangsu Rutong Casting Co., Ltd. (In Chinese
Pinyin)
========================
Incorporation Date: 2011-03-10
Registration No.: 320623000225977
Chief Executive: Cao Caihong (Legal
representative)
Huitong Petro-Machinery (Nantong) Co., Ltd.
(In Chinese Pinyin)
================================
Incorporation Date: 2004-12-15
Registration No.: 320600400011306
Chief Executive: Cao Caihong (Legal
representative)
PAYMENT
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.
BANKING
SC declined to
release its banking details.
FINANCIAL
HIGHLIGHTS
Balance Sheet (consolidated)
|
Unit: CNY’000 |
as of Dec. 31, 2013 |
as of Dec. 31, 2012 |
|
Cash & bank |
186,542 |
134,095 |
|
Note receivable |
22,802 |
30,684 |
|
Accounts receivable |
123,071 |
114,136 |
|
Advances to suppliers |
493 |
898 |
|
Other receivables |
2,399 |
2,326 |
|
Inventory |
92,399 |
102,959 |
|
Other current assets |
252 |
64 |
|
|
------------------ |
------------------ |
|
Current assets |
427,958 |
385,162 |
|
Fixed assets |
123,952 |
109,850 |
|
Projects under construction |
2,289 |
2,568 |
|
Intangible assets |
18,503 |
15,618 |
|
Deferred income tax assets |
1,891 |
1,514 |
|
Other assets |
652 |
652 |
|
|
------------------ |
------------------ |
|
Total assets |
575,245 |
515,364 |
|
|
============= |
============= |
|
Short loans |
0 |
0 |
|
Accounts payable |
28,505 |
26,477 |
|
Advances from clients |
10,935 |
9,637 |
|
Payroll payable |
9,572 |
8,810 |
|
Tax payable |
6,581 |
15,350 |
|
Other payable |
8,914 |
8,459 |
|
Other current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current liabilities |
64,507 |
68,733 |
|
Non-Current liabilities |
32,776 |
34,631 |
|
|
------------------ |
------------------ |
|
|
97,283 |
103,364 |
|
Equities |
477,962 |
412,000 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
575,245 |
515,364 |
|
|
============= |
============= |
Income Statement (consolidated)
|
Unit: CNY’000 |
as of Dec. 31, 2013 |
as of Dec. 31, 2012 |
|
Turnover |
304,169 |
281,125 |
|
Cost of goods sold |
140,112 |
127,514 |
|
Taxes and additional of main operation |
3,298 |
2,944 |
|
Sales expense |
26,793 |
24,740 |
|
Management expense |
37,764 |
35,307 |
|
Finance expense |
-48 |
-383 |
|
Asset impairment loss |
3,449 |
3,007 |
|
Investment income |
0 |
202 |
|
Non-operating income |
3,584 |
2,305 |
|
Non-operating expense |
271 |
332 |
|
Profit before tax |
96,114 |
90,171 |
|
Less: profit tax |
15,333 |
15,005 |
|
Profits |
80,781 |
75,166 |
Important Ratios
=============
|
|
as of Dec. 31, 2013 |
as of Dec. 31, 2012 |
|
*Current ratio |
6.63 |
5.60 |
|
*Quick ratio |
5.20 |
4.11 |
|
*Liabilities
to assets |
0.17 |
0.20 |
|
*Net profit
margin (%) |
26.56 |
26.74 |
|
*Return on
total assets (%) |
14.04 |
14.59 |
|
*Inventory
/Turnover ×365 |
111
days |
134
days |
|
*Accounts
receivable/Turnover ×365 |
148
days |
149
days |
|
*Turnover/Total
assets |
0.53 |
0.55 |
|
* Cost of
goods sold/Turnover |
0.46 |
0.45 |
FINANCIAL
COMMENTS
PROFITABILITY: FAIRLY GOOD
- The turnover of SC appears fairly good in its line.
- SC’s net profit margin is good.
- SC’s return on total assets is good.
- SC’s cost of goods sold is low, comparing with its turnover.
LIQUIDITY: FAIRLY GOOD
- The current ratio of SC is maintained in a fairly good level.
- SC’s quick ratio is maintained in a fairly good level.
- The inventory of SC appears fairly large.
- The accounts receivable of SC appears fairly large.
- SC has no short-term loan in both
years.
- SC’s turnover is in a fair level in both years, comparing with the
size of its total assets.
LEVERAGE: FAIRLY GOOD
- The debt ratio of SC is low.
- The risk for SC to go bankrupt is low.
Overall financial condition of the SC:
Fairly good.
REMARKS
SC is considered large-sized
in its line with fairly good financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.33 |
|
|
1 |
Rs.96.52 |
|
Euro |
1 |
Rs.69.52 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
VNT |
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.