MIRA INFORM REPORT
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Report No. : |
352608 |
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Report Date : |
07.12.2015 |
IDENTIFICATION DETAILS
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Name : |
GUANGDONG
JINMING MACHINERY CO., LTD. |
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Registered Office : |
Hepu Road, Haojiang District Shantou, Guangdong Province 515098 Pr |
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Country : |
China |
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Financials (as on) : |
30.09.2015 |
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Date of Incorporation : |
01.12.1987 |
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Com. Reg. No.: |
440500000049227 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject includes importing
and exporting goods and technology; processing with imported materials,
processing with imported samples, assembling with imported parts, and
compensation trade in agreement; manufacturing and processing plastics
industry special equipment and mould; manufacturing and selling plastic
products and rubber product; selling plastic raw material. |
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No. of Employees : |
558 |
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 : |
Good |
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Payment Behaviour : |
Regular |
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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) |
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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
GUANGDONG JINMING MACHINERY CO.,
LTD.
HEPU ROAD, HAOJIANG DISTRICT
SHANTOU, GUANGDONG PROVINCE
515098 PR CHINA
TEL: 86 (0) 754-89811333
FAX: 86 (0) 754-88206886
EXECUTIVE
SUMMARY
Date
of Registration :
december 1, 1987
registration
no. : 440500000049227
LEGAL
FORM : Shares limited company
REGISTERED
CAPITAL : CNY 242,483,991
staff :
558
BUSINESS CATEGORY :
MANUFACTURING & TRADING
REVENUE :
CNY 230,521,000 (CONSOLIDATED,
JAN. 1, 2015 TO SEP. 30, 2015)
EQUITIES :
CNY 722,563,000 (CONSOLIDATED, AS OF SEP. 30, 2015)
WEBSITE : www.jmjj.com
E-MAIL :
sales@jmjj.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 of Industry & Commerce (SAIC)
under registration No.: 440500000049227 on December 1, 1987.
SC’s Organization Code Certificate No.: 19298358-1
SC’s registered capital: CNY 242,483,991
SC’s paid-in capital: CNY 242,483,991
Registration
Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2014-7-31 |
Registered Capital |
CNY 120,000,000 |
CNY 121,185,000 |
|
2015-7-23 |
Registered Capital |
CNY 121,185,000 |
CNY 242,483,991 |
Current Co
search indicates SC’s shareholders & chief executives are as follows:-
|
Name of Shareholder (s) (As of September 30, 2015) |
% of Shareholding |
|
Ma Zhenxin |
44.73 |
|
Yu Suqin |
4.97 |
|
Liu Shulin |
3.43 |
|
Wang Zaicheng |
2.98 |
|
Ma Jiazhen |
2.97 |
|
Wang Xian |
2.97 |
|
Bank of China Co., Ltd.- Credit Suisse
Ruixin Medical & Healthy Industry Stock Securities Investment Fund |
1.96 |
|
Tang Mengni |
1.58 |
|
China Construction Bank-Credit Suisse
Ruixin Selected Balanced Mixed Securities Investment Fund |
1.24 |
|
Bank of China-Credit Suisse Ruixi Core
Value Equity Fund |
1.07 |
|
Other Shareholders |
32.1 |
SC’s Chief
Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Ma Zhenxin |
|
General Manager and Director |
Sun Weilong |
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Deputy General Manager and Director |
Wang Zaicheng |
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Independent Director |
Liu Li |
|
Feng
Yusheng |
|
|
Li
Shengping |
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Director |
Ma Jiazhen |
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Supervisor |
Li Mengdong
|
|
Li Weiming |
RECENT
DEVELOPMENT
SC is a listed
company in Shenzhen Stock Exchange Market with the code of 300281.
SHAREHOLDER
CHART & BACKGROUND
Name % of Shareholding
(As of September 30, 2015)
Ma Zhenxin 44.73
Yu Suqin 4.97
Liu Shulin 3.43
Wang Zaicheng 2.98
Ma Jiazhen 2.97
Wang Xian 2.97
Bank of China Co., Ltd.-Credit Suisse Ruixin Medical & Healthy
Industry Stock
Securities Investment Fund 1.96
Tang Mengni 1.58
China Construction Bank-Credit Suisse Ruixin Selected Balanced Mixed
Securities Investment Fund 1.24
Bank of China-Credit Suisse Ruixi Core Value Equity Fund 1.07
Other Shareholders 32.1
MANAGEMENT
Ma Zhenxin, Legal Representative and
Chairman
---------------------------------------------------------------------------
Ø Gender: M
Ø Age: 64
Ø Nationality: China
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal representative and chairman
Sun Weilong, General Manager and Director
----------------------------------------------------------------------
Ø Gender: M
Ø Age: 47
Ø Nationality: China
Ø Working experience
(s):
At present, working in SC as general manager and director
Wang Zaicheng, Deputy General Manager and
Director
------------------------------------------------------------------------------------
Ø Gender: M
Ø Age: 36
Ø Nationality: China
Ø Working experience
(s):
At present, working in SC as deputy general manager
and director
Independent
Director
----------------------------
Liu Li
Feng Yusheng
Li Shengping
Director
-----------
Ma Jiazhen
Supervisor
---------------
Li Mengdong
Li Weiming
BUSINESS
OPERATION
SC’s registered
business scope includes importing and exporting goods and technology;
processing with imported materials, processing with imported samples,
assembling with imported parts, and compensation trade in agreement;
manufacturing and processing plastics industry special equipment and mould;
manufacturing and selling plastic products and rubber product; selling plastic
raw material.
SC is mainly engaged in manufacturing and
selling plastics industry special equipment.
Brand: Jinming
SC’s products mainly include: blown film machine,
water quench blown film machine, cast film machine, biaxially oriented film
machine.
SC sources its
merchandises 100% from domestic market. SC sells 65% of its merchandises in
domestic market, and 35% 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*
==============
Tubulares Y Bolsas Plasticas Ltda.
Flexiplast S.A
Sealed Air Corporation
Staff
& Office:
--------------------------
SC is known to have approx. 558 staff at present.
SC owns an area as its operating office and
factory, but the detailed information is unknown.
RELATED COMPANY
SC is known to invest in the following
companies:
Shantou Far East Equipment Co., Ltd.
Jinjia New Material Technology (Guangdong) Co.,
Ltd.
Huiteng Software(Shantou) 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:
China Minsheng Bank
Shantou Sub-branch
AC#:
1701014170034845
FINANCIALS
Consolidated
Balance Sheet
|
Unit:
CNY’000 |
As of Dec. 31, 2014 |
As of Sep. 30, 2015 |
|
205,374 |
126,732 |
|
|
Accounts
receivable |
112,995 |
128,561 |
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Notes
receivable |
6,696 |
23,309 |
|
Advances to
suppliers |
31,433 |
41,146 |
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Other
receivable |
1,488 |
1,770 |
|
Inventory |
157,279 |
194,458 |
|
Non-current
assets within one year |
0 |
0 |
|
Other
current assets |
5,144 |
7,502 |
|
|
------------------ |
------------------ |
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Current
assets |
520,409 |
523,478 |
|
Long-term
investments |
0 |
0 |
|
Fixed
assets |
164,325 |
316,243 |
|
Construction
in progress |
168,498 |
42,752 |
|
Intangible
assets |
114,778 |
115,128 |
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Deferred
income tax assets |
3,895 |
3,968 |
|
Other
non-current assets |
29,812 |
9,859 |
|
|
------------------ |
------------------ |
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Total
assets |
1,001,717 |
1,011,428 |
|
|
============= |
============= |
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Short-term
loans |
157,890 |
167,890 |
|
Notes
payable |
7,404 |
2,564 |
|
Accounts
payable |
34,531 |
30,576 |
|
Payroll
payable |
1,111 |
1,054 |
|
Taxes
payable |
7,448 |
3,685 |
|
Interest
payable |
0 |
0 |
|
Advances
from clients |
35,794 |
19,096 |
|
Other
payable |
6,172 |
12,895 |
|
Other
current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
250,350 |
237,760 |
|
Non-current
liabilities |
53,728 |
51,105 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
304,078 |
288,865 |
|
Equities |
697,639 |
722,563 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
1,001,717 |
1,011,428 |
|
|
============= |
============= |
Consolidated
Income Statement
|
Unit:
CNY’000 |
As of Dec. 31, 2014 |
Jan. 1, 2015 to Sep. 30, 2015 |
|
Revenue |
361,468 |
230,521 |
|
Cost of sales |
227,059 |
148,475 |
|
Business Taxes and Surcharges |
2,031 |
1,796 |
|
Sales expense |
15,078 |
13,421 |
|
Management expense |
43,765 |
28,259 |
|
Finance expense |
8,976 |
6,756 |
|
Asset impairment loss |
820 |
487 |
|
Investment
income |
0 |
0 |
|
Non-operating
income |
6,893 |
2,547 |
|
Non-operating expense |
231 |
314 |
|
Profit
before tax |
70,400 |
33,560 |
|
Less:
profit tax |
10,108 |
5,361 |
|
60,292 |
28,199 |
Important Ratios
=============
|
|
As of Dec. 31, 2014 |
As of Sep. 30, 2015 |
|
*Current ratio |
2.08 |
2.20 |
|
*Quick ratio |
1.45 |
1.38 |
|
*Liabilities to assets |
0.30 |
0.29 |
|
*Net profit margin (%) |
16.68 |
12.23 |
|
*Return on total assets (%) |
6.02 |
2.79 |
|
*Inventory / Revenue ×365/270 |
159 days |
228 days |
|
*Accounts receivable / Revenue ×365/270 |
115 days |
386 days |
|
*Revenue / Total assets |
0.36 |
0.23 |
|
*Cost of sales / Revenue |
0.63 |
0.64 |
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 average.
l SC’s cost of goods sold is average,
comparing with its revenue.
LIQUIDITY: AVERAGE
l The current ratio of SC is maintained in a
fairly good level.
l SC’s quick ratio is maintained in a fairly
good level.
l The inventory of SC appears large.
l The accounts receivable of SC appears large.
l The short-term loans of SC appear large.
l SC’s revenue is in a fair level, comparing
with the size of its total assets.
LEVERAGE: AVERAGE
l The debt ratio of SC is low.
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. The large amount of
inventory, accounts receivable, and short-term loans may be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.84 |
|
|
1 |
Rs.101.04 |
|
Euro |
1 |
Rs.73.05 |
|
CNY |
1 |
Rs.10.41 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
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 |
|
|
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 |
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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.