MIRA INFORM REPORT
|
Report No. : |
353484 |
|
Report Date : |
12.12.2015 |
IDENTIFICATION DETAILS
|
Name : |
SHANDONG
ZHONGHENG CHAIN CO., LTD. |
|
|
|
|
Registered Office : |
Zone C, Tengzhou Economic Development District, Tengzhou City, Shandong
Province, 277599 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Date of Incorporation : |
29.07.2005 |
|
|
|
|
Com. Reg. No.: |
370481228019599 |
|
|
|
|
Legal Form : |
Limited Liabilities Co. |
|
|
|
|
Line of Business : |
Manufacturing and
selling gear, transmission, drive components; engaged in the import and
export business of the company related products. |
|
|
|
|
No. of Employee : |
65 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
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
SHANDONG ZHONGHENG CHAIN CO., LTD.
ZONE C, TENGZHOU
ECONOMIC DEVELOPMENT DISTRICT, TENGZHOU CITY, SHANDONG PROVINCE, 277599 PR
CHINA
TEL: 86 (0)
632-5996668/13969479772 FAX: 86 (0)
632-5915035
EXECUTIVE
SUMMARY
INCORPORATION DATE : JULY 29, 2005
REGISTRATION NO. : 370481228019599
REGISTERED LEGAL
FORM : LIMITED LIABILITIES CO.
STAFF STRENGTH : 65
REGISTERED CAPITAL :
CNY 5,000,000
BUSINESS LINE :
MANUFACTURING & TRADING
TURNOVER : CNY
24,510,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY 5,150,000 (AS OF DEC. 31, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION
: FAIRLY STABLE
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.4166 =
USD
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 July 29, 2005.
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
and selling gear, transmission, drive components; engaged in the import and
export business of the company related products. (With permit if needed)
SC is mainly engaged in manufacturing and
selling chain and sprockets.
Mr. Zhang Kailuan is legal representative,
executive director and general manager of SC at present.
SC is known to have approx. 65 employees at
present.
SC is currently operating at the above stated
address, and this address houses its operating office and factory in the economic
development zone of Tengzhou. The detailed premise information is unknown.
SC’s international sales department address is “Room 1205,
Unit A, Ruinakangdu, No. 69 Haimen Road, Shinan District, Qingdao City,
Shandong Province, 266071PR China”
Tel.: +86 (0)532-68628229
FAX: +86 (0)532-68628229
Email: sales@zhchain.com.cn
http://www.china-chain.com.cn/ The design is professional and the content is
well organized. At present it is in English and Chinese versions.
E-mail: china-chain@163.com
No significant
changes were found during our checks with the local Administration for Industry
and Commerce.
Organization Code:
778413279
For the past two
years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Lu Bingliang 42
Zhang Kailuan 58
l Legal representative, Executive director and General manager:
Mr. Zhang Kailuan
is currently responsible for the overall and daily management of SC.
Working
Experience(s):
At
present Working in SC as
legal representative, executive director and general manager.
l Supervisor:
Lu Bingliang
SC is mainly
engaged in manufacturing and selling chain and sprockets.
SC’s products mainly include: transmission
chain, conveyor chain, dragging chain and special chain, motorcycle chain and
industrial chain, etc.
SC sources its materials 100% from domestic market. SC sells 30% of its
products in domestic market, and 70% 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 refused to release its major
suppliers and customers.
There are no known related or affiliated 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
|
|
as
of Dec. 31, 2014 |
|
Cash & bank |
2,960 |
|
Inventory |
2,820 |
|
Accounts receivable |
3,820 |
|
Advances to suppliers |
0 |
|
Other receivables |
0 |
|
Other current assets |
0 |
|
|
------------------ |
|
Current assets |
9,600 |
|
Fixed assets net value |
1,640 |
|
Long term investment |
0 |
|
Projects under construction |
0 |
|
Intangible assets & other assets |
2,070 |
|
|
------------------ |
|
Total assets |
13,310 |
|
|
============= |
|
Short loans |
7,000 |
|
Accounts payable |
1,050 |
|
Accounts from customers |
0 |
|
Taxes payable |
90 |
|
Other accounts payable |
20 |
|
Accrued wages |
0 |
|
Notes payable |
0 |
|
|
------------------ |
|
Current liabilities |
8,160 |
|
Long term liabilities |
0 |
|
|
------------------ |
|
Total liabilities |
8,160 |
|
Equities |
5,150 |
|
|
------------------ |
|
Total liabilities & equities |
13,310 |
|
|
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31, 2014 |
|
Turnover |
24,510 |
|
Cost of goods sold |
21,910 |
|
Taxes and additional of main operation |
40 |
|
Sales expense |
200 |
|
Management expense |
1,700 |
|
Finance expense |
670 |
|
Assets impairment loss |
0 |
|
Other operating profit |
0 |
|
Non-operation income |
40 |
|
Non-operating expenses |
20 |
|
Profit before tax |
10 |
|
Less: profit tax |
60 |
|
Profits |
-50 |
Important Ratios
=============
|
|
as
of Dec. 31, 2014 |
|
*Current ratio |
1.18 |
|
*Quick ratio |
0.83 |
|
*Liabilities
to assets |
0.61 |
|
*Net profit
margin (%) |
-0.20 |
|
*Return on
total assets (%) |
-0.38 |
|
*Inventory
/Turnover ×365 |
42 days |
|
*Accounts
receivable/Turnover ×365 |
57 days |
|
*Turnover/Total
assets |
1.84 |
|
* Cost of
goods sold/Turnover |
0.89 |
PROFITABILITY: FAIR
l The turnover of SC appears average in its
line.
l SC’s net profit margin is fair.
l SC’s return on total assets is fair.
l SC’s cost of goods sold is average,
comparing with its turnover.
LIQUIDITY: AVERAGE
l The current ratio of SC is maintained in a
fair level.
l SC’s quick ratio is maintained in a normal
level.
l SC’s inventory appears average.
l SC’s accounts receivable appears average.
l SC’s short-term loan is large in 2014.
l SC’s turnover 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.
SC is considered small-sized
in its line with fairly stable financial conditions. The large amount of
short-term loan could be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.79 |
|
|
1 |
Rs.101.10 |
|
Euro |
1 |
Rs.73.10 |
|
CNY |
1 |
Rs.10.40 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
KIN |
|
|
|
|
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.