MIRA INFORM REPORT
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Report No. : |
337695 |
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Report Date : |
21.08.2015 |
IDENTIFICATION DETAILS
|
Name : |
QINGDAO
CHOHO INDUSTRIAL CO., LTD. |
|
|
|
|
Registered Office : |
No. 112
Hong Kong Road, Overseas Chinese Scientific & Technological Park, Pingdu,
Qingdao Shandong Province 266743 Pr |
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|
|
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Country : |
China |
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|
|
Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
09.10.1999 |
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|
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Com. Reg. No.: |
370283400003561 |
|
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Legal Form : |
Shares Limited Company |
|
|
|
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Line of Business : |
Manufacturing
and Selling of Chain, Sprockets, Automobile and Motorcycle Parts. |
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No. of Employees : |
700 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
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|
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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
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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.
|
Source
: CIA |
Company
Name and address
QINGDAO CHOHO INDUSTRIAL CO., LTD.
NO. 112 HONG KONG ROAD, OVERSEAS
CHINESE
SCIENTIFIC & TECHNOLOGICAL PARK,
PINGDU, QINGDAO
SHANDONG PROVINCE 266743 PR CHINA
TEL: 86 (0) 532-83303877/83305958
FAX: 86 (0) 532-83305959
EXECUTIVE
SUMMARY
Date of Registration : octOBER 9, 1999
REGISTRATION NO. : 370283400003561
LEGAL FORM : shares limited company
REGISTERED CAPITAL : CNY 61,300,000
staff : 700
BUSINESS CATEGORY : MANUFACTURING & trading
Revenue : CNY 466,740,000 (AS OF DEC. 31, 2014)
EQUITIES : CNY 95,050,000 (AS OF DEC. 31, 2014)
WEBSITE : www.chohogroup.com
E-MAIL : info@chohogroup.com
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.39 = 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 shares limited company of PRC with State Administration for Industry &
Commerce (SAIC) under registration No.: 370283400003561.
SC’s Organization Code Certificate No.:
71376815-9
SC’s Tax No.: 370283713768159
SC’s registered capital: CNY 61,300,000
SC’s paid-in capital: CNY 61,300,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2013-10-31 |
Registered
Capital |
CNY 2,640,000 |
CNY 33,400,000 |
|
Legal Form |
One-Person Limited
Liability Company |
Limited Liabilities Company |
|
|
Shareholder (s) (% of Shareholding) |
Qingdao Crevon Machinery Co., Ltd. 100% |
Qingdao Crevon Machinery Co., Ltd. 99.25% Jin Xuezhen 0.75% |
|
|
-- |
Registered
Capital |
CNY 33,400,000 |
CNY 57,000,000 |
|
-- |
Legal Form |
Limited Liabilities Company |
Shares Limited Company |
|
2014-7-28 |
Registered
Capital |
CNY 57,000,000 |
CNY 60,000,000 |
|
2014-8-21 |
Registered
Capital |
CNY 60,000,000 |
CNY 61,300,000 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Qingdao
Jinshuo Equity Investment Enterprise (Limited partnership) |
14.91 |
|
Qingdao
Crevon Machinery Co., Ltd. |
81.42 |
|
Chen Lipeng |
0.88 |
|
Fu Zhenming |
0.3 |
|
Jin Xuezhen |
0.61 |
|
Mu Jiahai |
0.6 |
|
Ren
Zengsheng |
0.37 |
|
Xiang Hua |
0.7 |
|
Xu Dazhi |
0.21 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal
Representative, Chairman and General Manager |
Jin Yumo |
|
Director |
Hong Xianguo |
|
Mu Jiahai |
|
|
Rao Wei |
|
|
Zheng Yuanwu |
|
|
Hu Jianjun |
|
|
Chen Lipeng |
|
|
Supervisor |
Jiang Fengqiang |
|
Mao Wenjia |
|
|
Fang Xiang |
RECENT
DEVELOPMENT
SC has passed ISO 9001:2000, OHSAS18001, ISO 14001:2004, etc. SC was awarded
“AAA Credit Grade”, “Hi-Tech Industrial Enterprise”, etc.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Qingdao Jinshuo Equity Investment Enterprise
(Limited partnership) 14.91
Qingdao Crevon Machinery Co., Ltd. 81.42
Chen Lipeng 0.88
Fu Zhenming 0.3
Jin Xuezhen 0.61
Mu Jiahai 0.6
Ren Zengsheng 0.37
Xiang Hua 0.7
Xu Dazhi 0.21
Qingdao Crevon
Machinery Co., Ltd.
==============================
Date of Registration: September 29, 1995
Registration No.: 370283228004182
Registered Capital: CNY 1,800,000
Qingdao Jinshuo
Equity Investment Enterprise (Limited partnership)
====================================================
Date of Registration: December 4, 2013
Registration No.: 370283230044754
MANAGEMENT
Jin Yumo, Legal Representative, Chairman and General
Manager
-------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 47
Ø
ID# 370226196801011216
Ø Qualification:
University
Ø Working experience
(s):
At
present, working in SC as legal representative, chairman and general manager
Also
working in Qingdao Crevon Machinery Co., Ltd., Qingdao Choho Chain Drive Co.,
Ltd. (literal translation) and Qingdao Choho Gold Chain Co., Ltd. as legal
representative, and in Qingdao Choho Industrial Co., Ltd. Shinan Office as
principal
Director
-----------
Hong Xianguo
Mu Jiahai
Rao We
Zheng Yuanwu
Hu Jianjun
Chen Lipeng
Supervisor
--------------
Jiang Fengqiang
Mao Wenjia
Fang Xiang
BUSINESS
OPERATION
SC’s registered business
scope includes manufacturing chain, sprockets, automobile and motorcycle parts;
importing & exporting commodities.
SC is mainly
engaged in manufacturing and selling chain, sprockets, automobile and
motorcycle parts.
Brand: CHOHO
SC’s products
mainly include:
Driving chains
Motorcycle chains
Hoisting Chains
Agricultural
Chains
Stainless Steel
Roller Chains
Car Engine Chains
Motorcycle Engine
Chains
Etc.
SC sources its materials 100% from domestic market. SC sells 50% of its products in domestic market, and 50% 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.
*Major Customers:
==============
Iwiss Drive
Systmes, Llc.
Chain Boss Inc.
Secoya
International Trading, Inc.
Mcguire Bearing
Company
Staff & Office:
--------------------------
SC is known
to have approx. 700 staff at
present.
SC owns an area as
its operating office & factory of approx. 110,000 sq. meters at the heading
address.
RELATED COMPANY
Qingdao Choho Chain Drive Co., Ltd.
Qingdao Choho Gold Chain 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
Basic Bank:
Agricultural
Bank of China Pingdu Branch
AC#:
8010029352
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
|
7,200 |
6,158 |
38,600 |
|
|
Notes receivable |
2,836 |
1,400 |
1,420 |
|
Accounts receivable |
18,847 |
26,272 |
16,560 |
|
Advances to suppliers |
16,177 |
21,095 |
2,080 |
|
Other receivable |
728 |
522 |
860 |
|
Inventory |
60,499 |
57,433 |
80,890 |
|
Non-current assets within one year |
0 |
0 |
0 |
|
Other current assets |
0 |
169 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Current assets |
106,287 |
113,049 |
140,410 |
|
Long-term investment |
35,500 |
34,990 |
41,290 |
|
Fixed assets |
33,649 |
36,409 |
41,390 |
|
Construction in progress |
2,795 |
686 |
1,980 |
|
Intangible assets |
2,167 |
2,103 |
2,040 |
|
Long-term prepaid expenses |
0 |
0 |
0 |
|
Deferred income tax assets |
749 |
835 |
0 |
|
Other non-current assets |
0 |
56 |
2,060 |
|
|
------------------ |
------------------ |
------------------ |
|
Total assets |
181,147 |
188,128 |
229,170 |
|
|
============= |
============= |
============= |
|
Short-term loans |
67,500 |
100,000 |
102,500 |
|
Notes payable |
2,000 |
0 |
10,000 |
|
Accounts payable |
23,151 |
15,167 |
28,190 |
|
Wages payable |
1,298 |
2,040 |
2,670 |
|
Dividends payable |
10,875 |
15 |
0 |
|
Taxes payable |
-76 |
2,049 |
2,550 |
|
Advances from clients |
9,232 |
11,754 |
0 |
|
Other payable |
45,546 |
14,416 |
1,550 |
|
Other current liabilities |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Current liabilities |
159,526 |
145,441 |
147,460 |
|
Non-current liabilities |
3,980 |
3,980 |
10,850 |
|
|
------------------ |
------------------ |
------------------ |
|
Total liabilities |
163,506 |
149,421 |
158,310 |
|
Equities |
17,641 |
38,707 |
70,860 |
|
|
------------------ |
------------------ |
------------------ |
|
Total liabilities & equities |
181,147 |
188,128 |
229,170 |
|
|
============= |
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
|
Revenue |
241,550 |
295,513 |
382,280 |
|
Cost of sales |
194,882 |
229,894 |
304,780 |
|
Taxes and surcharges |
1,076 |
1,585 |
1,720 |
|
Sales expense |
10,031 |
12,271 |
17,190 |
|
Management expense |
17,311 |
22,052 |
26,650 |
|
Finance expense |
3,822 |
7,566 |
9,420 |
|
Profit before tax |
15,147 |
24,168 |
23,190 |
|
Less: profit tax |
2,035 |
3,103 |
3,480 |
|
13,112 |
21,065 |
19,710 |
Financial Summary
|
Unit: CNY’000 |
As of Dec. 31, 2014 |
|
Total assets |
351,910 |
|
|
------------- |
|
Total liabilities |
256,860 |
|
Equities |
95,050 |
|
|
------------- |
|
Revenue |
466,740 |
|
Profit before tax |
27,800 |
|
Less: profit tax |
3,610 |
|
Profits |
24,190 |
Important Ratios
=============
|
|
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
|
*Current ratio |
0.67 |
0.78 |
0.95 |
-- |
|
*Quick ratio |
0.29 |
0.38 |
0.40 |
-- |
|
*Liabilities to assets |
0.90 |
0.79 |
0.69 |
0.73 |
|
*Net profit margin (%) |
5.43 |
7.13 |
5.16 |
5.18 |
|
*Return on total assets (%) |
7.24 |
11.20 |
8.60 |
6.87 |
|
*Inventory / Revenue ×365 |
92 days |
71 days |
78 days |
-- |
|
*Accounts receivable/ Revenue ×365 |
29 days |
33 days |
16 days |
-- |
|
*Revenue/Total assets |
1.33 |
1.57 |
1.67 |
1.33 |
|
*Cost of sales / Revenue |
0.81 |
0.78 |
0.80 |
-- |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIRLY GOOD
l The revenue of SC
appears fairly good in its line.
l SC’s net profit
margin is fairly good.
l SC’s return on
total assets is fairly good.
l
SC’s cost of sales is average, comparing with its
revenue.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC appears large.
l
The accounts receivable of SC is maintained in an
average level.
l
The short-term loans of SC appear large.
l
SC’s revenue 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.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.24 |
|
|
1 |
Rs.102.21 |
|
Euro |
1 |
Rs.72.57 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
NIT |
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.