MIRA INFORM REPORT
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Report No. : |
351939 |
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Report Date : |
02.12.2015 |
IDENTIFICATION DETAILS
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Name : |
NINGJIN APC INDUSTRIES CO., LTD. |
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Registered Office : |
No. 18, Taishan Road, Ningjin County Industrial Park, Dezhou City, Shandong Province, 253400 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
05.03.1999 |
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Com. Reg. No.: |
371400400001753 |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
Design, manufacture and sale of machinery, electronic products and
after-sales service; import and export business of goods and technology. |
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No. of Employees : |
150 |
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 – 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 & address
NINGJIN APC INDUSTRIES CO., LTD.
NO. 18, TAISHAN ROAD, NINGJIN COUNTY INDUSTRIAL PARK, DEZHOU CITY,
SHANDONG PROVINCE, 253400 PR CHINA
TEL: 86 (0) 534-5571078/7076211 FAX:
N/A
EXECUTIVE
SUMMARY
INCORPORATION DATE :
MARCH 5, 1999
REGISTRATION NO. :
371400400001753
REGISTERED LEGAL FORM : ONE-PERSON LIMITED LIABILITY COMPANY
CHIEF EXECUTIVE :
MR. CUI SHUSHENG (CHAIRMAN)
STAFF STRENGTH :
150
REGISTERED CAPITAL : CNY 19,865,300
BUSINESS LINE :
DESIGN, MANUFACTURING, SELLING
TURNOVER :
CNY 64,070,000 (AS OF DEC. 31,
2014)
EQUITIES :
CNY 28,110,000 (AS OF DEC. 31, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.3895 = 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
Note: SC is also known as Ning Jin APC Industrial Co., Ltd.
SC was registered as one-person limited liability company at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license).
.
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 CNY100,000. 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 design, manufacture and
sale of machinery, electronic products and after-sales service;
import and export business of goods and technology.
SC is mainly engaged in design, manufacture and
sale of valves.
Mr.
Cui Shusheng is the legal representative, chairman and general
manager of SC at present.
SC is known to have approx. 150 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 Ningjin County.
SC’s employee refused to release the detailed information of the premise.
http://www.apc-valve.com/ The design is professional and the content is well
organized. At present it is in Chinese and English versions.
E-mail: njcuishusheng@vip.163.com
No significant changes were found during our checks with the local AIC.
SC
has obtained the IS09001:2000 international quality system certification,
CE certification of the European Community, Det Norske Veritas (DNV) factory
certification, Lloyd's Register (LR) factory certification, China
Classification Society (CCS) quality system certification and the FM and UL
certification of the US, etc. Moreover, SC has been awarded with a great number
of titles successively, including one of the top 50 private enterprises in
Dezhou, one of the top 20 enterprises in Dezhou having achieved the largest
exports, enterprise of Dezhou that observes contract and keeps promise,
high-tech enterprise of Shandong Province, Shandong research center for
engineering technology of butterfly valve, enterprise technology center of
Shandong Province, and enterprise with AAA-level credit rated by numerous
banks, such as Agriculture Bank of China of Dezhou.
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Ningjin County
Hengsheng Valve Co., Ltd. (in Chinese
pinyin) 100
Registration no.: 371422018003231
Legal representative: Cui Shusheng
Registered capital: CNY 14,000,000
Legal representative, chairman and general manager:
Mr. Cui Shusheng, member of the Communist Party of China, graduated from
Dezhou Finance & Trade School in 1984. He is currently responsible for the
overall management of SC.
Working Experience(s):
At present Working
in SC as chairman, legal representative and general
manager.
Also working in Ningjin County Hengsheng Valve Co., Ltd. (in Chinese
pinyin) and Ningjin Baohua Machinery Co., Ltd. (in Chinese pinyin) as legal
representative.
Supervisor:
Li Entang
SC is mainly engaged in design, manufacture and sale of valves.
SC’s products mainly include:
FMUL product
Centre-line butterfly valve
Double-eccentric high performance butterfly valve
Ball valve
Check valve
Operating device
Pipe fittings
SC sources its materials 99% from domestic market, and 1% from the
overseas market. SC sells 10% of its products in domestic market, and 90% to overseas market.
The buying terms of SC include Check, L/C, 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 refused to release its main suppliers and clients.
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Registration No. |
15103704 |
8004085 |
8004097 |
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Registration Date |
2015-9-21 |
2011-2-28 |
2011-2-28 |
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Trademark Design |
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Subsidiary:
Ningjin Baohua
Machinery Co., Ltd. (in Chinese pinyin)
===============================
Registration no.: 371422200012337
Legal representative: Cui Shusheng
Incorporation date: 2014-12-29
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
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As of Dec. 31,
2014 |
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Cash & bank |
5,410 |
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Notes receivable |
0 |
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Inventory |
79,980 |
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Accounts receivable |
22,240 |
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Advances to suppliers |
0 |
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Other receivables |
3,170 |
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Other current assets |
0 |
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------------------ |
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Current assets |
110,800 |
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Fixed assets net value |
25,930 |
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Projects under construction |
4,320 |
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Intangible assets |
23,500 |
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Long term investment |
500 |
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Other assets |
0 |
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------------------ |
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Total assets |
165,050 |
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============= |
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Short loans |
73,000 |
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Notes payable |
0 |
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Accounts payable |
19,490 |
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Advances from clients |
0 |
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Accrued payroll |
420 |
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Taxes payable |
-1,300 |
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Other accounts payable |
16,480 |
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Surcharge payable |
0 |
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Other current liabilities |
1,000 |
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Current liabilities |
109,090 |
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Long term liabilities |
27,850 |
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Total liabilities |
136,940 |
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Equities |
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Total liabilities & equities |
165,050 |
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Income
Statement
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Unit: CNY’000 |
as of Dec. 31,
2014 |
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Turnover |
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Cost of goods sold |
48,510 |
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Taxes and additional of main operation |
360 |
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Sales expense |
2,260 |
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Management expense |
12,410 |
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Finance expense |
5,860 |
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Non-operational income |
6,440 |
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Non-operational expense |
60 |
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Profit before tax |
1,050 |
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Less: profit tax |
270 |
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Profits |
780 |
Important
Ratios
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as of Dec. 31,
2014 |
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*Current ratio |
1.02 |
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*Quick ratio |
0.28 |
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*Liabilities to assets |
0.83 |
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*Net profit margin (%) |
1.22 |
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*Return on total assets (%) |
0.47 |
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*Inventory /Turnover ×365 |
456 days |
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*Accounts receivable/Turnover ×365 |
127 days |
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*Turnover/Total assets |
0.39 |
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* Cost of goods sold/Turnover |
0.76 |
PROFITABILITY:
AVERAGE
The turnover 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 turnover.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a poor level.
The inventory of SC is large.
The accounts receivable of SC appears average.
SC’s short-term loan is large in 2014.
SC’s turnover is in a fair level, comparing with the size of its total
assets.
LEVERAGE: FAIR
The debt ratio of SC is high.
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. The large amount of inventory
and short loans could be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
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US Dollar |
1 |
Rs.66.52 |
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|
1 |
Rs.100.44 |
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Euro |
1 |
Rs.70.44 |
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CNY |
1 |
Rs.10.41 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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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.