MIRA INFORM REPORT
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Report No. : |
320126 |
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Report Date : |
30.04.2015 |
IDENTIFICATION DETAILS
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Name : |
BEIJING LAN GUANG VALVE MANUFACTORY CO. |
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Registered Office : |
RM. 208, Bldg. B, Deheng Business Club, No. 2, North Taipingzhuang Road, Haidian District, Beijing, 100000 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
26.10.1984 |
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Com. Reg. No.: |
110108004008333 |
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Legal Form : |
Collective-Owned Enterprise |
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Line of Business : |
Subject is mainly engaged in manufacturing and selling compressor
valves. |
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No. of Employees : |
180 |
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 – December 31, 2014
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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 |
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. 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.
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Source
: CIA |
Company
name and address
BEIJING LAN GUANG VALVE MANUFACTORY CO.
RM. 208, BLDG. B, DEHENG BUSINESS CLUB, NO. 2, NORTH TAIPINGZHUANG ROAD,
HAIDIAN DISTRICT, BEIJING, 100000 PR CHINA
TEL: 86 (0) 10-62005619 FAX: 86 (0) 10-62388838
EXECUTIVE
SUMMARY
INCORPORATION DATE : oct. 26, 1984
REGISTRATION NO. : 110108004008333
REGISTERED LEGAL FORM : COLLECTIVE-OWNED
ENTERPRISE
STAFF STRENGTH :
180
REGISTERED CAPITAL : CNY 20,826,000
BUSINESS LINE :
MANUFACTURING & TRADING
TURNOVER :
CNY 83,840,000 (AS OF DEC. 31,
2014)
EQUITIES :
CNY 51,950,000 (AS OF DEC. 31, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY
6.20 = USD 1
HISTORY
Note: According to its website,
SC is also known as Beijing Blue-Ray Micro-Machinery Factory.
SC was registered as a Collective-owned enterprise at local Administration for industry & commerce (AIC -
the official body of issuing and renewing business license) on Oct. 26, 1984.
Company Status:
Collective-owned enterprise
This form of business in PR China is defined as a legal person. It is a private held entity owned by a set number of private individuals (usually employees of the co., residents of a village or town), domestic business organizations or domestic institutions. The general manager who was appointed by the employees representative meeting manages the co. The laboring masses work together based on the principle of distribution according to work, reasonably share the profit, and win certain accumulated public fund. The collective-owned enterprise is independent economic organization and legal corporation engaged in production & operation activities and independent accounting, with self-management and self-responsibility for the profit and loss.
SC’s registered business scope includes manufacturing compressor parts, stamping, clock parts, instrument and meters, arts and crafts; import and export of goods and technologies, and acting as an agent for it; selling metal materials, daily groceries, hardware, home appliance and mechanical equipment. Any project that needs to be approved by law can only be carried out after getting approval by relevant authorities.
SC is mainly engaged in manufacturing and selling compressor valves.
Mr. Yang Baocheng is legal representative, chairman and general manager of SC at present.
SC is known to have approx. 180 employees at present.
SC is currently operating at the above stated address, and this address houses its operating office in the commercial zone of Beijing. The detailed information of the premise is unspecified.
Note: SC’s factory address is not available.
WEB
SITE
http://www.lan-guang.com.cn The design is professional and the content is well organized. At present it is in both Chinese and English versions.
Email: zhao@lan-guang.com.cn
KEY
EVENTS/RECENT DEVELOPMENT
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2010-10-21 |
Registered capital |
CNY 11,000,000 |
CNY 17,286,000 |
|
2011-10-10 |
Registered capital |
CNY 17,286,000 |
Present amount |
Organization Code: 102025858
LITIGATION
For the past two years there is no record of litigation.
OWNERSHIP/MANAGEMENT
MAIN SHAREHOLDERS:
Name Investment amount (CNY’0000) %
of Shareholding
Collectively owned of Beijing
Lan Guang Valve Manufactory Co. 119.6 5.74
Liu Fenglan 48.8 2.34
Zhang Baoming 24.4 1.17
Yang Baocheng 915 43.94
Cao Jianrong 48.8 2.34
Zhu Li 3.7 0.18
Zhao Minghai 915 43.94
Ma Daji 7.3 0.35
MANAGEMENT
- Legal representative, Chairman and
General manager:
Mr. Yang Baocheng is currently responsible for
the overall and daily management of SC.
Working Experience(s):
At present Working in SC as legal representative,
chairman and general manager.
·
Vice Chairman:
Mr. Zhao Minghai is currently responsible for
the daily management of SC.
Working Experience(s):
At present Working in SC as vice chairman.
- Director:
Cao Jianrong
- Supervisor:
Liu Fenglan
BUSINESS
OPERATIONS
SC is mainly engaged in manufacturing and selling compressor valves.
SC’s products mainly include: Reed valve For Refrigerating Compressor, Reed valve For Automobile Air Conditioning Compressor, Reed valve For Vehicle Automatic Pump
Trademarks & patents
Registration no.: 4354865
Registration date: 2007-7-7
Trademark
design: 
SC sources its materials 100% from domestic market. SC sells 99% of its products in domestic market, and 1% 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 customer and supplier details.
RELATED
COMPANIES
SC
is not known to have any subsidiary at present.
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’s management
declined to release its bank details.
FINANCIAL
HIGHLIGHTS
Balance Sheet
Unit: CNY’000
|
|
as
of Dec. 31, 2014 |
|
Cash & bank |
3,720 |
|
Notes receivable |
13,780 |
|
Inventory |
0 |
|
Accounts
receivable |
27,750 |
|
Advances to
suppliers |
2,150 |
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Other
receivables |
2,090 |
|
Other current
assets |
880 |
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|
------------------ |
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Current assets |
50,370 |
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Fixed assets net
value |
2,970 |
|
Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
0 |
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------------------ |
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Total assets |
53,340 |
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============= |
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Short loans |
0 |
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Accounts payable |
100 |
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Other payable |
120 |
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Taxes payable |
640 |
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Accrued expenses |
510 |
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Other current
liabilities |
20 |
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------------------ |
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Current
liabilities |
1,390 |
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Long term
liabilities |
0 |
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|
------------------ |
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Total
liabilities |
1,390 |
|
Equities |
51,950 |
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|
------------------ |
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Total
liabilities & equities |
53,340 |
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============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31,
2014 |
|
Turnover |
83,840 |
|
Cost of goods sold |
63,430 |
|
Sales expense |
750 |
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Management expense |
4,000 |
|
Finance expense |
120 |
|
Profit before
tax |
14,790 |
|
Less: profit tax |
3,700 |
|
Profits |
11,090 |
Important Ratios
=============
|
|
as
of Dec. 31, 2014 |
|
*Current ratio |
36.24 |
|
*Quick ratio |
36.24 |
|
*Liabilities
to assets |
0.03 |
|
*Net profit
margin (%) |
13.23 |
|
*Return on
total assets (%) |
20.79 |
|
*Inventory
/Turnover ×365 |
/ |
|
*Accounts
receivable/Turnover ×365 |
121 days |
|
*Turnover/Total
assets |
1.57 |
|
* Cost of
goods sold/Turnover |
0.76 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIRLY GOOD
- The turnover of SC appears average 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 average,
comparing with its turnover.
LIQUIDITY: AVERAGE
- The current ratio of SC is maintained
in a normal level.
- SC’s quick ratio is maintained in a
normal level.
- SC has no inventory in 2014.
- The accounts receivable of SC appears
large in 2014.
- SC
has no short-term loan in 2014.
- SC’s turnover is in an average level,
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 medium-sized in its line with fairly good
financial conditions. The large amount of accounts receivable could be a threat
to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.20 |
|
|
1 |
Rs.97.10 |
|
Euro |
1 |
Rs.69.34 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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Report Prepared
by : |
VNT |
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 |
|
|
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 |
-- |
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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.