MIRA INFORM REPORT
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Report No. : |
319518 |
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Report Date : |
30.04.2015 |
IDENTIFICATION DETAILS
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Name : |
NINGBO HONGYU INDUSTRIAL CO., LTD. |
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Registered Office : |
No. 668 Fuchun River Road, Beilun District, Ningbo City, Zhejiang, 315824 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
28.12.2003 |
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Com. Reg. No.: |
330206000104992 |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
Subject is engaged in researching, developing, manufacturing and selling auto shock absorbers and other key spare parts of cars. |
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No of Employees : |
463 |
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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
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
NINGBO HONGYU INDUSTRIAL CO., LTD.
No. 668 fuchun river road, beilun district,
ningbo city,
zhejiang, 315824 PR CHINA
TEL: 86 (0) 574-86817923/86811166-6400 FAX: 86 (0) 574-86811166-6404
EXECUTIVE
SUMMARY
INCORPORATION DATE : DEC.
28, 2003
REGISTRATION NO. :
330206000104992
REGISTERED LEGAL FORM : ONE-PERSON LIMITED LIABILITY COMPANY
STAFF STRENGTH :
463
REGISTERED CAPITAL : CNY 93,952,631
BUSINESS LINE :
R&D, MANUFACTURING, TRADING
TURNOVER :
CNY 109,373,000 (AS OF DEC. 31, 2013)
EQUITIES :
CNY 86,322,000 (AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.2046= 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 equity
joint venture enterprise at local Administration for Industry & Commerce
(AIC - The official body of issuing and renewing business license) on Dec. 28,
2003 and has been under the current ownership since 2010
Company Status: One-person Limited
Liability Company Single person LLC refers to a
limited liability company set up by only one natural person or legal person
as the single shareholder of it. The minimum registered capital
of Single person LLC is CNY 100,000. The shareholder’s capital contributes,
as set out by the articles of associations should be a lump-sum payment in
full. One natural person can only
invest in and set up one limited liability company, which is not permitted
to invest in and set up a new Single person LLC. As to any one-person limited
liability company, the sole-investor nature of the natural person or legal
person shall be indicated in the registration documents of the company and
shall be indicated in the business license thereof as well. The regulation of Single person
LLC should be set up by the shareholder The regulation of Single person
LLC has no shareholder meeting.
SC’s registered
business scope includes researching, developing and manufacturing auto shock absorbers
and other key spare parts of cars; importing and exporting various goods and
technologies (excluding goods or technologies limited or forbidden by state).
SC is mainly
engaged in researching, developing, manufacturing and selling auto shock absorbers and other key spare
parts of cars.
Mr. Zheng Nianhui
has been legal representative, chairman and general manager of SC since 2010.
SC is known
to have approx. 463 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 Ningbo. Our checks
reveal that SC owns the premise with about 73,000 square meters.
www.addchina.com
The web belongs to SC’s parent ADD Industry (Zhejiang) Corporation Limited. The
design is professional and the content is well organized. At present it is in
Chinese and English versions.
Changes of its registered
information are as follows:
|
Date of change |
Item |
Before the
change |
After the change |
|
2010-11-26 |
Registered Legal Form |
Chinese-foreign equity joint venture
enterprise |
Present one |
|
Legal representative |
Zheng Liansong |
Present one |
|
|
Reg. No. |
007879 |
Present one |
Tax Registration Certificate No.: 33020675628252X
Organization code: 75628252X
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
ADD Industry (Zhejiang) Corporation Limited 100
Registration No.: 331021000007607
Incorporation Date: Aug. 20, 1998
Registered Capital: CNY 80,000,000
Registered legal form: Shares Limited
Company
Legal
Representative: Mr. Zheng Nianhui
Website: www.addchina.com
Tel: 86 (0) 576-87278888
Fax: 86(0) 576-87278887
l Legal
Representative, Chairman and General Manager:
Mr. Zheng Nianhui is currently responsible for the overall management of
SC.
Working Experience(s):
From 2010 to present Working in SC as legal representative, chairman and general
manager.
Also working in ADD Industry (Zhejiang)
Corporation Limited, Taizhou Jiayu Import & Export Co., Ltd. and Zhejiang
Jiayu Industrial Co., Ltd. as legal representative
l Directors:
Zheng Lianping
Zheng Liansong
l Supervisor:
Wang Junfeng
SC is mainly engaged
in researching, developing, manufacturing and selling auto shock absorbers and other key spare parts of cars.
SC’s products mainly include: twin tubes shock
absorber, strut cartridge absorber,
shock absorber with spring seat, gasbag shock absorber, etc.
SC sources its materials 100% from domestic
market. SC sells 75% of its products in domestic market, and 25% to overseas
market, mainly to East Asia and Africa.
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 major clients and suppliers.
Zhejiang Jiayu Industrial Co., Ltd. (literal translation)
======================================
Registration No.: 330600400000038
Incorporation Date: Sep. 26, 2005
Registered Capital: CNY 91,053,956
Registered legal form: One-person Limited
Liability Company
Legal
Representative: Mr. Zheng Nianhui
Taizhou Jiayu Import & Export Co., Ltd. (literal
translation)
======================================
Registration No.: 331021000045559
Incorporation Date: Feb. 13, 2009
Registered Capital: CNY 5,000,000
Registered legal form: One-person Limited
Liability Company
Legal
Representative: Mr. Zheng Nianhui
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, 2012 |
as of Dec. 31, 2013 |
|
Cash & bank |
8,440 |
13,140 |
|
Inventory |
9,780 |
26,656 |
|
Accounts
receivable |
14,800 |
16,800 |
|
Advances to
suppliers |
310 |
/ |
|
Other
receivables |
140 |
159 |
|
Other current
assets |
400 |
/ |
|
|
------------------ |
------------------ |
|
Current assets |
33,870 |
57,514 |
|
Fixed assets net
value |
92,500 |
97,327 |
|
Long term investment |
0 |
/ |
|
Projects under
construction |
3,350 |
/ |
|
Intangible
assets |
7,190 |
6,974 |
|
Deferred tax
assets |
2,310 |
/ |
|
|
------------------ |
------------------ |
|
Total assets |
139,220 |
166,270 |
|
|
============= |
============= |
|
Short loans |
0 |
/ |
|
Accounts payable |
15,250 |
37,156 |
|
Advances from
clients |
490 |
/ |
|
Notes payable |
13,570 |
/ |
|
Accrued payroll |
1,930 |
/ |
|
Taxes payable |
370 |
/ |
|
Other accounts
payable |
22,020 |
13,651 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
53,630 |
79,948 |
|
Long term
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
53,630 |
79,948 |
|
Equities |
85,590 |
86,322 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
139,220 |
166,270 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31,
2012 |
as of Dec. 31,
2013 |
|
Turnover |
109,870 |
109,373 |
|
Cost of goods sold |
99,280 |
/ |
|
Taxes and additional of main operation |
50 |
/ |
|
Sales expense |
960 |
/ |
|
Management expense |
8,480 |
/ |
|
Finance expense |
130 |
/ |
|
Non-operating
income |
10 |
/ |
|
Non-operating expense |
170 |
/ |
|
Asset impairment loss |
240 |
/ |
|
Profit before
tax |
580 |
1,411 |
|
Less: profit tax |
-2,320 |
-1,630 |
|
2,900 |
3,041 |
Note: SC refused to release its detailed financial statements of Yr
2013.
Important Ratios
=============
|
|
as
of Dec. 31, 2012 |
as
of Dec. 31, 2013 |
|
*Current ratio |
0.63 |
0.72 |
|
*Quick ratio |
0.45 |
0.39 |
|
*Liabilities
to assets |
0.39 |
0.48 |
|
*Net profit
margin (%) |
2.64 |
2.78 |
|
*Return on
total assets (%) |
2.08 |
1.83 |
|
*Inventory
/Turnover ×365 |
32 days |
89 days |
|
*Accounts
receivable/Turnover ×365 |
49 days |
56 days |
|
*Turnover/Total
assets |
0.79 |
0.66 |
|
* Cost of
goods sold/Turnover |
0.90 |
/ |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in both
years.
l
SC’s net profit margin is average in both years.
l
SC’s return on total assets is average in both
years.
l
SC’s cost of goods sold is average in 2012,
comparing with its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is fair in both years.
l
SC’s quick ratio is fair in 2012 but poor in
2013.
l
SC’s inventory is fairly large in 2013.
l
The accounts receivable of SC appears average in
both years.
l
SC has no short-term loan in 2012.
l
SC’s turnover is in a fair level, comparing with
the size of its total assets in both years.
LEVERAGE: AVERAGE
l
The debt ratio of SC is low.
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.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 63.20 |
|
|
1 |
Rs. 97.00 |
|
Euro |
1 |
Rs. 69.33 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
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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.