MIRA INFORM REPORT
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Report No. : |
335430 |
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Report Date : |
12.08.2015 |
IDENTIFICATION DETAILS
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Name : |
LITONG ALUMINIUM INDUSTRY (SHANGHAI) CO., LTD. |
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Registered Office : |
No. 4888 Tingfeng Expressway, Zhujing Town, Jinshan District,
Shanghai 201500 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
29.09.2000 |
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Com. Reg. No.: |
310000400248064 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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Line of Business : |
Subject is engaged in cleaning, coating and cutting aluminum sheet;
manufacturing aluminum plastic composite panels, aluminum ceiling and other
related decoration materials & products; selling self-made commodities.
(with permit if needed). |
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No. of Employees : |
160 |
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 – March 31, 2015
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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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; (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 2014 more than 274 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 passing legislation to allow local governments to issue bonds, opening several state-owned enterprises to further private investment, loosening the one-child policy, passing harsher pollution fines, and cutting administrative red tape.
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Source
: CIA |
Company
Name & address
LITONG ALUMINIUM INDUSTRY
(SHANGHAI) CO., LTD.
NO. 4888 TINGFENG EXPRESSWAY, ZHUJING TOWN
JINSHAN DISTRICT, SHANGHAI 201500 PR CHINA
TEL: 86 (0) 21-57314898/57332295
FAX: 86 (0) 21-57314899
EXECUTIVE
SUMMARY
Date of Registration : SEPtember 29, 2000
REGISTRATION NO. : 310000400248064
LEGAL FORM : CHINESE-FOREIGN
EQUITY JOINT VENTURE ENTERPRISE
CHIEF EXECUTIVE :
XIONG XIAOLIN (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 18,000,000
staff :
160
BUSINESS CATEGORY : MANUFACTURING & TRADING
Revenue :
CNY 306,797,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY 38,611,000 (AS OF DEC. 31, 2014)
WEBSITE : www.shlitong.cn
E-MAIL :
shby-finance@hklitong.com
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.21 = USD 1
Adopted
abbreviations (as follows)
SC - Subject Company
(the company inquired by you)
N/A – Not available
CNY – China Yuan Ren
Min Bi
OPERATIONAL
TREND & GENERAL REPUTATION
This section aims at indicating the relative positions of SC in respect
of its operational trend & general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not
yet be determined
Not yet be determined
LEGAL STATUS & HISTORY
SC was established as a Chinese-foreign equity joint venture enterprise of
PRC with State Administration of Industry & Commerce (SAIC) under
registration No.: 310000400248064
on September 29, 2000.
SC’s Organization Code Certificate No.:
13215558-1
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SC’s Tax No.: 310228132155581
SC’s registered capital: CNY 18,000,000
SC’s paid-in capital: CNY 18,000,000
Registration Change Record:-
No significant changes of SC have been noted
in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
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Litong Aluminum Industry (Guangdong) Co., Ltd. |
75 |
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(Hong Kong) Litong Investment Holdings Company Limited |
25 |
SC’s Chief Executives:-
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Position |
Name |
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Legal Representative and Chairman |
Xiong Xiaolin |
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Vice Chairman |
Zhang Xiaoping |
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Director |
Xiong Jianlan |
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Supervisor |
Huang Guoqing |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Litong Aluminum Industry (Guangdong) Co., Ltd. 75
(Hong Kong) Litong Investment Holdings Company Limited 25
Litong Aluminum Industry (Guangdong) Co., Ltd.
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Date of Registration: October 23, 2003
Registration No.: 440681400025581
Chief Executive: Jiang Wenbin
Registered Capital: HKD 24,000,000
(Hong Kong) Litong Investment Holdings Company Limited
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CR No.: 1764885
Legal Form: Private
MANAGEMENT
Xiong Xiaolin, Legal Representative and Chairman
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Gender: M
Qualification: University
Working experience (s):
At present, working in SC as legal representative and chairman
Zhang Xiaoping,
Vice Chairman
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Gender: F
Qualification: University
Working experience (s):
At present, working in SC as vice chairman
Director
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Xiong Jianlan
Supervisor
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Huang Guoqing
BUSINESS OPERATION
SC’s registered business scope includes cleaning, coating and cutting
aluminum sheet; manufacturing aluminum plastic composite panels, aluminum
ceiling and other related decoration materials & products; selling
self-made commodities. (with permit if needed).
SC is mainly engaged in manufacturing and selling aluminum plastic
composite panels & other decoration materials.
SC’s products mainly include: aluminum plastic composite panels, painted
aluminum foil, aluminum smallpox gusset plate.
SC sources its materials 70% from domestic market and 30% from overseas market. SC sells 45% of its products in domestic market and 55% to overseas market.
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.
*Major Customers*
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Metro Metals USA
Compuestos De Alta Tecnologiasa De Cv
Staff &
Office:
--------------------------
SC is known to have approx. 160
staff at present.
SC owns an area as its operating office & factory of approx. 20,000
sq. meters at the heading address.
RELATED COMPANY
Litong Aluminium Industry (Wuxi) Co., Ltd.
Litong Aluminium Industry (Shandong) Co., Ltd.
Litong Aluminium Industry (Henan) Co., Ltd.
Litong Chemicals (Wuxi) Co., Ltd.
PAYMENT
Overall payment appraisal: ( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be 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
The bank information of SC is not filed in SAIC.
FINANCIALS
Financial Summary
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Unit: CNY’000 |
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
As of Dec. 31,
2014 |
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Total assets |
117,157 |
112,804 |
100,671 |
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Total liabilities |
84,909 |
75,528 |
62,060 |
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Equities |
32,248 |
37,276 |
38,611 |
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Revenue |
215,288 |
331,311 |
306,797 |
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Cost of sales |
202,329 |
312,551 |
289,735 |
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Profit before tax |
2,976 |
6,966 |
4,785 |
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Less: profit tax |
25 |
1,741 |
811 |
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Profits |
2,951 |
5,225 |
3,974 |
Important Ratios
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As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
As of Dec. 31,
2014 |
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*Liabilities to assets |
0.72 |
0.67 |
0.62 |
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*Net profit margin (%) |
1.37 |
1.58 |
1.30 |
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*Return on total assets (%) |
2.52 |
4.63 |
3.95 |
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*Revenue/Total assets |
1.84 |
2.94 |
3.05 |
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*Cost of sales / Revenue |
0.94 |
0.94 |
0.94 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
The revenue of SC appears fairly good in its line.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of sales is fairly high, comparing with its revenue.
LIQUIDITY: AVERAGE
SC’s revenue is in an average level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Stable.
CONCLUSIONS
SC is considered medium-sized in its line with stable financial
conditions.
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.17 |
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|
1 |
Rs.99.85 |
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Euro |
1 |
Rs.70.35 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
TPT |
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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<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.