MIRA INFORM REPORT
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Report No. : |
319234 |
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Report Date : |
30.04.2015 |
IDENTIFICATION DETAILS
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Name : |
FESTO PRODUCTION LTD |
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Registered Office : |
No. 1617 Fenghuang Road, High-Tech Zone, Jinan, Shandong Province, 250101 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
10.11.2004 |
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Com. Reg. No.: |
370000400003799 |
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Legal Form : |
Wholly Foreign Owned Enterprise |
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Line of Business : |
Manufacturing and Selling of Pneumatics Components. |
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No. of Employees : |
800 |
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
|
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
Festo Production Ltd.
no. 1617 fenghuang
road, High-tech Zone, jinan,
shandong PROVINCE,
250101 PR CHINA
TEL: 86 (0) 531-55723402 FAX:
N/A
EXECUTIVE
SUMMARY
INCORPORATION DATE : NOV. 10, 2004
REGISTRATION NO. : 370000400003799
REGISTERED LEGAL FORM : WHOLLY FOREIGN OWNED
ENTERPRISE
STAFF STRENGTH : 800
REGISTERED CAPITAL : cny 253,000,000
BUSINESS LINE :
Manufacturing & SELLING
TURNOVER : CNY 1,456,960,000 (AS OF DEC. 31, 2014)
EQUITIES : CNY 378,490,000 (AS
OF DEC. 31, 2014)
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.20= 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 wholly foreign owned
enterprise at provincial Administration for Industry & Commerce (AIC - The
official body of issuing and renewing business license) on Nov. 10, 2004.
Company Status: Wholly foreign-owned enterprise
This form of business in PR China
is defined as a legal person. It is a limited co. established within the
territories of PR China with capital provided totally by the foreign
investors. More than one foreign investor may jointly invest in a wholly
foreign-owned enterprise. The investing party/parties solely exercise
management, reap profit and bear risks and liabilities by themselves. This
form of companies usually have a limited duration is extendible upon
approval of Examination and Approval Authorities.
SC’s registered business
scope includes design, processing, production and sale of low-power pneumatic
control valves and industrial automation products, systems, auxiliary equipment
and spare parts, provide technical training and after-sales service; engage in
these products wholesale, import and export, commission agency (excluding
auction), and to provide technical support and technical consulting services
for Festo Group's products.
SC is mainly
engaged in manufacturing and selling pneumatics components.
Mr. Claus Jessen is the legal representative and chairman of
SC at present.
SC is known
to have approx. 800 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 Jinan. Our checks reveal
that SC owns the total premise about 24,000 square meters.
SC is not known to have any websites at present.
Email: jinghui_yao@cn.festo.com
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2008 |
Registered Capital |
CNY 60,000,000 |
CNY 120,000,000 |
|
Unspecified |
Registered Capital |
CNY 120,000,000 |
Present amount |
|
Company Name |
Jinan JPC
Pneumatics Ltd. |
Present one |
|
|
Legal Rep. |
Thomas Rubbe |
Present one |
Subject passed the annual inspection of 2012 with Administration for
Industry & Commerce.
Organization Code: 769714467
For the past two years there is no record of litigation.
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Festo AG & Co. KG (Germany) 100
=======================
Web: http://www.festo.com
E-mail: infoservice@festo.com
Tel.: ++49 (0) 711/347-0
Fax: ++49 (0) 711/347-21 44
l Legal
Representative and Chairman:
Mr. Claus Jessen, he is currently responsible for the overall management
of SC.
Working Experience(s):
At present Working in SC as legal
representative and chairman.
Also working in Festo AG & Co. KG
(Germany) as director and in Festo China Production Co., Ltd. as legal
representative.
*Officials:
=======
Name Title
Christian Leonhard Director
Mr. Dr. Markus Sattler Supervisor
SC is mainly
engaged in manufacturing and selling pneumatics components.
SC’s products
mainly include: valves, cylinder and magnet switch.
SC sources its
materials 90% from domestic market, and 10% from the overseas market, mainly
European countries. SC sells 95% of its products in domestic market, and 5% to
the overseas market, mainly American and European countries.
The buying terms of SC include Check, T/T, L/C 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 major clients and suppliers.
Festo China Production Co., Ltd.
============================
Registration No.: 310115400158794
Incorporation Date:
Chairman: Claus Jessen
Tel: 86 (0) 21-58586611
Festo (China) Ltd.
======================
Registration No.: 310115400016626
Incorporation Date:
Chairman: Dr. Wilfried Karl Stoll
Web: http://www.festo.com.cn/cms/zh-cn_cn/index.htm
E-mail: Info_cn@cn.festo.com
Tel.: 021-60815100
Fax: 021-58540300
Festo (Singapore) Ltd.
Etc.
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.
Bank of China High-tech Zone Sub-branch
AC#：N/A
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
As of Dec. 31, 2014 |
|
Cash & bank |
41,900 |
|
Inventory |
309,440 |
|
Bills receivable |
64,420 |
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Accounts receivable |
129,550 |
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Advances to suppliers |
30,150 |
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Other receivables |
10,300 |
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Other current assets |
340 |
|
|
------------------ |
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Current assets |
586,100 |
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Fixed assets net value |
305,930 |
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Long term investment |
0 |
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Projects under construction |
14,360 |
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Intangible and other assets |
26,870 |
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|
------------------ |
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Total assets |
933,260 |
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|
=========== |
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Short loan |
0 |
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Accounts payable |
525,860 |
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Bills payable |
0 |
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Advances from clients |
50 |
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Salaries payable |
6,150 |
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Withdraw the expenses in advance |
11,540 |
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Taxes payable |
10,480 |
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Other Accounts payable |
180 |
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Other current liabilities |
20 |
|
|
------------------ |
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Current liabilities |
554,280 |
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Long term liabilities |
490 |
|
|
------------------ |
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Total liabilities |
554,770 |
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Equities |
378,490 |
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|
------------------ |
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Total liabilities & equities |
933,260 |
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|
=========== |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31, 2014 |
|
Turnover |
1,456,960 |
|
Cost of
goods sold |
1,254,550 |
|
Sales expense |
20,590 |
|
Management expense |
115,760 |
|
Finance expense |
-56,540 |
|
Profit before
tax |
119,910 |
|
Less:
profit tax |
33,550 |
|
Profits |
86,360 |
Important
Ratios
=============
|
|
As of Dec.
31, 2014 |
|
*Current ratio |
1.06 |
|
*Quick ratio |
0.50 |
|
*Liabilities to assets |
0.59 |
|
*Net profit margin (%) |
5.93 |
|
*Return on total assets (%) |
9.25 |
|
*Inventory /Turnover ×365 |
78 days |
|
*Accounts receivable/Turnover ×365 |
33 days |
|
*Turnover/Total assets |
1.56 |
|
* Cost of goods sold/Turnover |
0.86 |
PROFITABILITY: FAIRLY
GOOD
l The turnover of SC
appears good.
l SC’s net profit
margin is fairly good.
l SC’s return on
total assets is fairly good.
l
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC appears fairly large.
l
The accounts receivable of SC appears average.
l
SC has no short-term loan in 2014.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average.
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 inventory could be a threat to SC’s financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.20 |
|
|
1 |
Rs.97.01 |
|
Euro |
1 |
Rs.69.34 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
NIT |
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 |
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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.