MIRA INFORM REPORT
|
Report No. : |
353486 |
|
Report Date : |
10.12.2015 |
IDENTIFICATION DETAILS
|
Name : |
FOSHAN SHUNDE HONGDAO INDUSTRIAL CO., LTD. |
|
|
|
|
Registered Office : |
No. 106 Changbao West Road, Ronggui, Shunde District Foshan, Guangdong
Province 528305 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Date of Incorporation : |
14.11.2002 |
|
|
|
|
Com. Reg. No.: |
91440606744485602R |
|
|
|
|
Legal Form : |
Limited Liabilities Company |
|
|
|
|
Line of Business : |
Manufacturing coating equipment, coating
roll of aluminum, aluminum-plastic plates, composite device, operating and acting
as an agent of importing and exporting various kinds of commodities and
technology. |
|
|
|
|
No. of Employee : |
110 |
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 : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
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 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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.
|
Source
: CIA |
COMPANY
NAME AND ADDRESS
FOSHAN SHUNDE
HONGDAO INDUSTRIAL CO., LTD.
NO. 106 CHANGBAO WEST ROAD, RONGGUI, SHUNDE DISTRICT
FOSHAN, GUANGDONG PROVINCE 528305 PR CHINA
TEL: 86 (0) 757-28800101/28817532/28819251
FAX: 86 (0) 757-28800185
EXECUTIVE
SUMMARY
Date of Registration : november 14, 2002
Unified social credit code : 91440606744485602R
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL : cny 3,000,000
staff : 110
BUSINESS CATEGORY : manufacturing & trading
Revenue : CNY 134,351,000 (AS OF DEC. 31, 2014)
EQUITIES : CNY 89,405,000 (AS OF DEC. 31, 2014)
WEBSITE : N/A
E-MAIL : zhoulichao2004@hotmail.com
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
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 limited liabilities company of PRC with State Administration of Industry
& Commerce (SAIC) under unified social credit code: 91440606744485602R.
SC’s registered capital: cny 3,000,000
SC’s paid-in capital: cny 3,000,000
Registration Change Record:-
No significant changes of SC have been noted
in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Jiang Rongxing |
90 |
|
Zhang Gunzhao |
10 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman and General
Manager |
Jiang Rongxing |
|
Supervisor |
Zhang Gunzhao |
RECENT
DEVELOPMENT
***Honor:
-------------
ü China National
Technology Progress Prize No.1
ü 5th China National
Patent Technology Prize No.2
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Jiang Rongxing 90
Zhang Gunzhao 10
MANAGEMENT
Jiang Rongxing, Legal Representative, Chairman and General
Manager
--------------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal
representative, chairman and general manager
Also working in Foshan Shunde Hongdao
Industrial Co., Ltd. No.1 Branch as principal
Zhang Gunzhao,
Supervisor
------------------------------------------------
Ø
Gender: M
Ø Qualification:
University
BUSINESS
OPERATION
SC’s registered business scope includes
manufacturing coating equipment, coating roll of aluminum, aluminum-plastic
plates, composite device, operating and acting as an agent of importing and
exporting various kinds of commodities and technology.
SC is mainly
engaged in manufacturing and selling coating
equipment, coating roll of aluminum, aluminum-plastic plates.
Brand: 
SC’s products
mainly include:
Wood aluminum
composite panel
Aluminum Plastic
Composite Panel
Roller Coating
Aluminum Coil
Aluminum Honeycomb
Panel
PE/PVDF Roller
Coated Aluminum Coil
Aluminum honeycomb
panels
Wood pattern
aluminum coil
Roller coated and
embossed aluminum coil
Marble or stone
pattern aluminum coil
Marble or stone
pattern aluminum composite panel
Wall decorative
materials
Aluminum metal
ceiling materials
Colorful aluminum
coil
Aluminum Composite
Panel
Aluminum
coil/sheet
Colorful pattern
aluminum coil
Colorful pattern
aluminum composite panel
Aluminum composite
panel (ACP)
Chameleon and
Embossed Aluminum Composite Panel with Diamond Embossed Front Sheet
SC sources its materials 100% from domestic
market, mainly Guangdong. SC sells 85% of its products in domestic market, and
15% to overseas market, mainly Thailand, Korea, and etc.
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. 110 staff at
present.
SC owns an area as
its operating office & factory of approx. 10,000 sq. meters at the heading
address.
RELATED
COMPANY
SC is known to have a
branch at present:
===============================
u
Foshan Shunde Hongdao Industrial Co., Ltd. No.1 Branch
---------------------------------------------------------------------------
Date of Registration :
September 26, 2007
Registration No. : 440681000019184
Legal Form : Branch Company
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
The bank
information of SC is not filed in SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2013 |
As
of Dec. 31, 2014 |
|
Cash |
2,662 |
4,854 |
|
Notes receivable |
0 |
0 |
|
Accounts
receivable |
23,458 |
25,332 |
|
Advances to
suppliers |
12,900 |
8,574 |
|
Other receivable |
7,474 |
38,798 |
|
Inventory |
58,799 |
51,858 |
|
Prepaid expenses |
0 |
0 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
105,293 |
129,416 |
|
Long-term
investment |
26,160 |
15,000 |
|
Fixed assets |
7,468 |
5,965 |
|
Construction in
progress |
0 |
0 |
|
Intangible
assets |
0 |
0 |
|
Long-term
prepaid expenses |
547 |
421 |
|
Deferred income
tax assets |
0 |
0 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
139,468 |
150,802 |
|
|
============= |
============= |
|
Short-term loans |
2,000 |
0 |
|
Notes payable |
823 |
4,229 |
|
Accounts payable |
9,998 |
13,287 |
|
Wages payable |
578 |
526 |
|
Taxes payable |
1,476 |
1,559 |
|
Advances from
clients |
59,021 |
41,353 |
|
Other payable |
441 |
443 |
|
Accrued expenses |
0 |
0 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
74,337 |
61,397 |
|
Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
74,337 |
61,397 |
|
Equities |
65,131 |
89,405 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
139,468 |
150,802 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2013 |
As of Dec. 31, 2014 |
|
Revenue |
100,919 |
134,351 |
|
Cost of sales |
70,089 |
95,092 |
|
Taxes and surcharges |
631 |
1,123 |
|
Sales expense |
1,147 |
780 |
|
Management expense |
4,702 |
4,786 |
|
Finance expense |
543 |
107 |
|
Non-operating income |
98 |
39 |
|
Non-operating expense98 |
225 |
63 |
|
Profit before
tax |
23,682 |
32,440 |
|
Less: profit tax |
6,008 |
8,165 |
|
Profits |
17,674 |
24,275 |
Important Ratios
=============
|
|
As
of Dec. 31, 2013 |
As
of Dec. 31, 2014 |
|
*Current ratio |
1.42 |
2.11 |
|
*Quick ratio |
0.63 |
1.26 |
|
*Liabilities
to assets |
0.53 |
0.41 |
|
*Net profit
margin (%) |
17.51 |
18.07 |
|
*Return on
total assets (%) |
12.67 |
16.10 |
|
*Inventory /
Revenue ×365 |
213 days |
141 days |
|
*Accounts receivable
/ Revenue ×365 |
85 days |
69 days |
|
*Revenue /
Total assets |
0.72 |
0.89 |
|
*Cost of sales
/ Revenue |
0.69 |
0.71 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIRLY GOOD
l The revenue of SC
appears average 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 goods sold is average, comparing with
its revenue.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a fairly
good level in both years.
l
SC’s quick ratio is maintained in a normal level in
2014.
l
The inventory of SC appears large in both years.
l
The accounts receivable of SC is maintained in an
average level.
l
SC has no short-term loans in 2014.
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.
The large amount of inventory may be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.75 |
|
|
1 |
Rs.100.29 |
|
Euro |
1 |
Rs.72.89 |
|
CNY |
1 |
Rs.10.37 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
ANK |
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.