MIRA INFORM REPORT
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Report No. : |
351741 |
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Report Date : |
01.12.2015 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
No. 318, Kexin Road, Wangchun Industrial Park, Yinzhou, Ningbo,
Zhejiang Province, 315171 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
04.06.2004 |
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Com. Reg. No.: |
330212000023299 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing, processing, wholesaling and retailing magnet
materials and components; wholesaling and retailing rare earth materials,
equipment and metal materials; consulting service of magnetic application
technology; importing and exporting commodities and technology |
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No. of Employee : |
200 |
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. 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 for the first time in modern history. Still, China's per capita income is below the world average.
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 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 also 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 and address
NINGBO TONGCHUANG STRONG MAGNET MATERIAL
CO., LTD.
NO. 318, Kexin Road, Wangchun Industrial Park,
Yinzhou, Ningbo, zhejiang PROVINCE, 315171 PR CHINA
TEL: 86 (0) 574-88017718/88089786/88170908 FAX: 86
(0) 574-88017898/88089789/88170906
EXECUTIVE
SUMMARY
INCORPORATION DATE :
JUne 4, 2004
REGISTRATION NO. :
330212000023299
REGISTERED LEGAL FORM : LIMITED
LIABILITIES COMPANY
CHIEF EXECUTIVE :
MR. LAI YUEWEI (CHAIRMAN)
STAFF STRENGTH :
approximately 200
REGISTERED CAPITAL : CNY 25,000,000
BUSINESS LINE :
R & D, MANUFACTURING and trading
TURNOVER :
cny 178,590,000 [as of
EQUITIES :
cny 143,410,000 [as of
PAYMENT : NO COMPLAINTS
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
average
EXCHANGE RATE :
CNY 6.3911 =
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 limited liabilities company at local Administration for
industry & commerce (AIC - the official body of issuing and renewing
business license) on June 4, 2004.
Company Status: Limited liabilities co.
This form
of business in PR China is defined as a legal person. No more than fifty
shareholders contribute its registered capital jointly. Shareholders bear
limited liability to the extent of shareholding, and the co. is liable for its
debts only to extent of its total assets. The characteristics of this form of
co. are as follows:
Upon
the establishment of the co., an investment certificate is issued to the each
of shareholders.
The
board of directors is comprised of three to thirteen members.
The
minimum registered capital for a co. is CNY 30,000.
Shareholders
may take their capital contributions in cash or by means of tangible assets or
intangible assets such as industrial property and non-patented technology.
Cash
contributed by all shareholders must account for at least 30% of the registered
capital.
Existing
shareholders have pre-exemption right to purchase shares of the co. offered for
sale by the other shareholders and to subscribe for the newly increased
registered capital of the co.
SC’s
registered business scope includes manufacturing, processing, wholesaling and
retailing magnet materials and components; wholesaling and retailing rare earth
materials, equipment and metal materials; consulting service of magnetic
application technology; importing and exporting commodities and technology
(excluding the goods prohibited or limited by the country).
SC
is mainly engaged in researching, developing, manufacturing and selling all
kinds of permanent magnet materials.
Mr.
Lai Yuewei is legal representative and chairman of SC at present.
SC is
known to have approximately 200 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. The detailed
information of the premise is unspecified.
Note: One of the given telephone number
(0574-88089888) does not belong to SC.
http://www.ndmagnets.com
The design is professional and the content is well organized. At present it is
in Chinese, German and English versions.
Email:
tc@ndmagnets.com
Changes of its registered
information are as follows:
|
Date |
Item |
Before the change |
After the change |
|
2005-06-22 |
Shareholders |
Jin Xiaoheng: 5%; Zhu Xiaoqiang: 5%; Zhao Hongliang :30%; Wei Youfu:10%; Cheng Menghua :15%; Lai Yuewei:15%; Lai Huizhen:20% |
Fan Hong : 5%; Ye Wenzhong : 5%; Zhao Hongliang :30%; Lu Linxiang:10%; Cheng Menghua :15%; Lai Yuewei:15%; Lai Huizhen:20% |
|
2007-11-14 |
Registered Capital |
CNY 10,000,000 |
CNY 50,000,000 |
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Registration No. |
3302272002798 |
Present One |
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|
2009-10-15 |
Registered Capital |
CNY 50,000,000 |
CNY 25,000,000 |
|
2010-09-30 |
Shareholders |
Fan Hong : 5%; Ye Wenzhong: 5%; Zhao Hongliang :30%; Lu Linxiang :10%; Cheng Menghua :15%; Lai Yuewei:15%; Lai Huizhen:20% |
Present Ones |
Organization
code: 761474438
For
the past two years there is no record of litigation.
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Jin
Xiaoheng 5
Lu
Chaoqun 5
Wei
Youfu 10
Cheng
Menghua 15
Lai
Yuewei 15
Lai
Huizhen 20
Zhao
Hongliang 30
Legal representative and Chairman:
Mr.
Lai Yuewei is currently responsible for the overall management of SC.
Working
Experience(s):
At
present Working in SC as legal representative
and chairman.
General Manager and Director:
Zhao Hongliang is
currently responsible for the daily management of SC.
Working
Experience(s):
At
present Working in SC as general manager and
director.
Directors:
Cheng Menghua
Lai Huizhen
Lu Chaoqun
Supervisors:
Jin
Xiaoheng
Wei
Youfu
Zhang
Xuemin
SC
is mainly engaged in researching, developing, manufacturing and selling all
kinds of permanent magnet materials.
SC’s
products mainly include: neodymium iron boron, ferrite and alnico magnet.
SC
sources its materials 100% from domestic market. SC sells 70% of its products
in domestic market and 30% 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.
Note: SC’s management declined to release its customer and
supplier details.
TRADEMARKS & PATENTS
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Registration No. |
14258173 |
14257998 |
9829481 |
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Registration Date |
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Trademark Design |
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SC
is not known to have any related companies.
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’s
management declined to release its bank details.
Balance Sheet
Unit: CNY’000
|
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AS OF Dec. 31, 2014 |
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Cash & bank |
23,420 |
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Inventory |
55,950 |
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Accounts receivable |
43,540 |
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Prepaid Accounts |
1,370 |
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Notes receivable |
70 |
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Other receivables |
1,000 |
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-------------------- |
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Current assets |
125,350 |
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Long term investment |
0 |
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Fixed assets net value |
52,960 |
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Intangible assets |
14,380 |
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Long-term deferred and prepaid expenses |
800 |
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Other non-current assets |
10 |
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Total assets |
193,500 |
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============= |
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Short-term loan |
0 |
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Accounts payable |
33,060 |
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Deposit received |
11,770 |
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Accrued
payroll |
740 |
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Tax
payable |
-2,100 |
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Other accounts payable |
6,620 |
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Current liabilities |
50,090 |
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Long term liabilities |
0 |
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---------------------- |
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Total liabilities |
50,090 |
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Equities |
|
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------------------------ |
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Total liabilities & equities |
193,500 |
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=============== |
Income Statement
Unit:
CNY’000
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AS OF Dec. 31, 2014 |
|
Turnover |
178,590 |
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Cost of goods sold |
154,140 |
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Taxes and additional of main operation |
1,240 |
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Sales expense |
4,230 |
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Management expense |
14,920 |
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Finance expense |
-320 |
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Asset impairment loss |
0 |
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Income from changes in fair value |
0 |
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Investment income |
0 |
|
Non-operating income |
3,390 |
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Non-operating expenses |
180 |
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Profit before tax |
7,590 |
|
Less: profit tax |
660 |
|
Profits |
6,930 |
Important Ratios
=============
|
|
AS OF Dec. 31, 2014 |
|
*Current ratio |
2.50 |
|
*Quick ratio |
1.39 |
|
*Liabilities to assets |
0.26 |
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*Net profit margin (%) |
3.88 |
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*Return on total assets (%) |
3.58 |
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*Inventory /Turnover ×365 |
114 days |
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*Accounts receivable/Turnover ×365 |
89 days |
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*Turnover/Total assets |
0.92 |
|
* Cost of goods sold/Turnover |
0.86 |
PROFITABILITY: AVERAGE
The
turnover 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 goods sold is average, comparing with its
turnover.
LIQUIDITY: AVERAGE
The
current ratio of SC is fairly good.
SC’s
quick ratio is normal.
The
inventory of SC appears fairly large.
The
accounts receivable of SC appears average.
SC
has no short loans in 2014.
SC’s
turnover is in a fair level in 2014, comparing with the size of its total
assets.
LEVERAGE: FAIRLY GOOD
The
debt ratio of SC is low.
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 a development history of 11 years.
The large amount of inventory could be a threat to SC’s financial condition.
Taking into consideration of SC’s general performance and financial condition,
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.81 |
|
|
1 |
Rs.100.37 |
|
Euro |
1 |
Rs.70.68 |
|
CNY |
1 |
Rs.10.39 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
TRU |
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 |
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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 |
-- |
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.