MIRA INFORM REPORT
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Report No. : |
336530 |
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Report Date : |
17.08.2015 |
IDENTIFICATION DETAILS
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Name : |
ZHEJIANG GEARTECH INDUSTRIAL CO., LTD. |
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Registered Office : |
No. 1900 Haifeng Road, Binhai Industrial Zone, Economic & Technological
Development Zone Taizhou, Zhejiang Province 318000 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
20.06.2006 |
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Com. Reg. No.: |
331000000019088 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing and selling of plastic raw materials compounding
machinery, plastic molding machines, coating equipment, galvanizing
equipment, light box cloth manufacturing equipment, non-woven manufacturing
equipment, metal structure, aluminum panels; selling decorative materials,
building materials, metal materials; importing and exporting goods and
technology. |
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No. of Employees : |
100 |
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
ZHEJIANG GEARTECH INDUSTRIAL CO.,
LTD.
NO. 1900 HAIFENG ROAD, BINHAI INDUSTRIAL ZONE
ECONOMIC & TECHNOLOGICAL DEVELOPMENT ZONE
TAIZHOU, ZHEJIANG PROVINCE 318000 PR CHINA
TEL: 86 (0) 576-88128786/88128787
FAX: 86 (0) 576-88128785
EXECUTIVE
SUMMARY
Date of Registration : june 20, 2006
REGISTRATION NO. : 331000000019088
LEGAL FORM : LIMITED LIABILITIES
COMPANY
CHIEF EXECUTIVE :
ruan heping (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : cny
21,880,000
staff :
100
BUSINESS CATEGORY :
manufacturing & trading
Revenue :
CNY 95,220,000 (AS OF DEC. 31,
2014)
EQUITIES :
CNY 18,570,000 (AS OF DEC. 31, 2014)
WEBSITE : www.geartech.cn
E-MAIL :
wzb@geartech.cn
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND :
fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.20 = 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 limited liabilities company of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.:
331000000019088 on june 20, 2006.
SC’s Organization Code Certificate No.:
78968674-X
SC’s Tax No.: 33100178968674X
SC’s registered capital: cny 21,880,000
SC’s paid-in capital: cny 21,880,000
Registration Change Record:-
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Date |
Change of Contents |
Before the change |
After the change |
|
2011 |
Company Name |
Zhejiang Geartech Machinery Co., Ltd. |
Zhejiang Geartech Industrial Co., Ltd. |
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Registered Capital |
CNY 13,880,000 |
cny 21,880,000 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Ruan Heping |
70 |
|
Liang Meidan |
30 |
SC’s Chief Executives:-
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Position |
Name |
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Legal Representative, Chairman and General Manager |
Ruan Heping |
|
Supervisor |
Liang Meidan |
RECENT DEVELOPMENT
SC has got the certificate ISO9001.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Ruan Heping 70
Liang Meidan 30
MANAGEMENT
Ruan Heping, Legal
Representative, Chairman and General Manager
-----------------------------------------------------------------------------------------------------
Gender: M
Age: 38
ID# 332603197712196710
Qualification: University
Working experience (s):
From 2006 to present, working in SC as legal representative, chairman
and general manager
Also working in Taizhou Geartech Extrusion Equipment Co., Ltd. as legal
representative and chairman
Liang Meidan,
Supervisor
----------------------------------------------
Gender: F
Age: 39
ID# 332603197612306062
Qualification: University
BUSINESS OPERATION
SC’s registered business scope includes manufacturing and
selling plastic raw materials compounding machinery, plastic molding machines,
coating equipment, galvanizing equipment, light box cloth manufacturing
equipment, non-woven manufacturing equipment, metal structure, aluminum panels;
selling decorative materials, building materials, metal materials; importing
and exporting goods and technology.
SC is mainly engaged in manufacturing and selling coating equipment, and
galvanizing equipment.
Brand: GEARTECH
SC’s products mainly include:
JET-1300/1600/2000Aluminum Composite Panel
Production Line
JETHDG-1250 Hot-Dip Galvanizing Line
JETX-150/30-60 Steel Coil Coating Line
JETDC-1300CL/JETDC-1600CL Aluminum Coil Coating Line
JETPL-1250 Push-Pull Pickling Line
Etc.
SC sources its materials 100% from domestic market, mainly Zhejiang. SC
sells 40% of its products in domestic market, and 60% to overseas market,
mainly U.S.A., Europe, Mid East and Southeast Asia.
The buying terms of SC include T/T and Credit of 30-60 days. The payment
terms of SC include T/T, L/C and Credit of 30-60 days.
Staff &
Office:
--------------------------
SC is known to have approx. 100
staff at present.
SC owns an area as its operating office & factory of approx. 38,000
sq. meters at the heading address.
RELATED COMPANY
Taizhou Geartech Extrusion Equipment Co., Ltd.
---------------------------------------
Date of Registration: September 29, 2004
Registration No.: 3310042004892
Legal Form: Limited Liabilities
Company
Chief Executive: Ruan Heping
Registered Capital: CNY 3,180,000
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
Basic Bank:
Agricultural Bank of China Taizhou Branch Luqiao Sub-branch
AC#: 920101040100359
FINANCIALS
Balance Sheet
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Unit: CNY’000 |
As of Dec. 31,
2014 |
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Cash |
12,770 |
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Notes receivable |
0 |
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Accounts receivable |
4,940 |
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Advances to suppliers |
0 |
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Other receivable |
1,800 |
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Inventory |
28,620 |
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Non-current assets within one year |
0 |
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Other current assets |
10 |
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------------------ |
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Current assets |
48,140 |
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Fixed assets |
12,070 |
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Construction in progress |
0 |
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Intangible assets |
0 |
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Long-term investment |
0 |
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Deferred income tax assets |
0 |
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Other non-current assets |
4,580 |
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------------------ |
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Total assets |
64,790 |
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============= |
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Short-term loans |
11,500 |
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Notes payable |
0 |
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Accounts payable |
20,700 |
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Welfares payable |
0 |
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Taxes payable |
0 |
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Advances from clients |
0 |
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Other payable |
150 |
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Other current liabilities |
13,870 |
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------------------ |
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Current liabilities |
46,220 |
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Non-current liabilities |
0 |
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Total liabilities |
46,220 |
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Equities |
18,570 |
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Total liabilities & equities |
64,790 |
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Income Statement
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Unit: CNY’000 |
As of Dec. 31,
2014 |
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Revenue |
95,220 |
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Cost of sales |
83,280 |
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Sales expense |
1,510 |
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Management expense |
8,120 |
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Finance expense |
570 |
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Profit before tax |
2,290 |
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Less: profit tax |
560 |
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Profits |
1,730 |
Important Ratios
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As of Dec. 31, 2014 |
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*Current ratio |
1.04 |
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*Quick ratio |
0.42 |
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*Liabilities to assets |
0.71 |
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*Net profit margin (%) |
1.82 |
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*Return on total assets (%) |
2.67 |
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*Inventory / Revenue ×365 |
110 days |
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*Accounts receivable / Revenue ×365 |
19 days |
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*Revenue / Total assets |
1.47 |
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*Cost of sales / Revenue |
0.87 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
· The revenue of SC appears average in its line.
· SC’s net profit margin is average.
· SC’s return on total assets is average.
· SC’s cost of goods sold is average, comparing with its revenue.
LIQUIDITY: AVERAGE
· The current ratio of SC is maintained in a normal level.
· SC’s quick ratio is maintained in a fair level.
· The inventory of SC appears large.
· The accounts receivable of SC is maintained in an average level.
· The short-term loan of SC appears large.
· 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 above average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable financial
conditions. The large amount of inventory and short-term loans may be a threat
to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.60 |
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|
1 |
Rs.100.09 |
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Euro |
1 |
Rs.71.23 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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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 |
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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.