MIRA INFORM REPORT
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Report No. : |
354462 |
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Report Date : |
16.12.2015 |
IDENTIFICATION DETAILS
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Name : |
QINGZHOU BAOFENG COATING TECHNIQUE CO., LTD. |
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Registered Office : |
West of Jinshun Road, Economic Development Zone, Qingzhou, Shandong
Province, 262500 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
04.01.2007 |
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Com. Reg. No.: |
370781228028903 |
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Legal Form : |
Limited Liabilities Co. |
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Line of Business : |
Subject is engaged in manufacturing, processing and selling of vacuum
metallizer machine |
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No. of Employee : |
100 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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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 and address
QINGZHOU BAOFENG COATING TECHNIQUE CO., LTD.
WEST OF JINSHUN ROAD, ECONOMIC DEVELOPMENT
ZONE, QINGZHOU, SHANDONG PROVINCE, 262500 PR CHINA
TEL: 86 (0)
536-2137966 FAX: 86 (0) 536-2137996
EXECUTIVE
SUMMARY
INCORPORATION DATE :
JAN. 4, 2007
REGISTRATION NO. :
370781228028903
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
STAFF STRENGTH : 100
REGISTERED CAPITAL : CNY 10,000,000
BUSINESS LINE :
MANUFACTURING, PROCESSING AND SELLING
TURNOVER :
CNY 32,270,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY 1,430,000 (AS OF DEC. 31, 2014)
PAYMENT :
SLOW BUT CORRECT
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.4588=USD
Adopted abbreviations:
ANS - amount not stated NS
- not stated SC - subject company (the
company inquired by you)
NA - not available CNY
– China Yuan Ren Min Bi
SC was registered as a limited liabilities co. at local
Administration for Industry & Commerce (AIC-The official body of issuing
and renewing business license) on Jan. 4, 2007.
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 processing and sales of coating equipment, coating,
coating material, sales vacuum equipment and packaging machinery, import and
export of goods. (with permit if needed)
SC is mainly engaged in manufacturing, processing and selling of vacuum
metallizer machine.
Mr. Liu Peijie is the legal
representative, executive director and general manager of SC at present.
SC is known
to have approx. 100 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 Qingzhou. SC’s
employee refused to release the gross area of the premise.
http://www.sdbaofeng.com/index.asp
The design is professional and the content is well organized. At present the
web is in English and Chinese versions.
Email: baofeng2006@163.com
Changes
of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
2015-7-2 |
Registered Capital |
CNY 2,000,000 |
Present amount |
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Shareholders & shareholdings (%) |
Liu Peijie 55% Cui Rui 40% Cui Qiang 5% |
Present ones |
Organization code: 797304991
MAIN SHAREHOLDERS:
Name
% of shareholdings
Liu Peijie 60
l
Legal Representative, Executive director and
General manager:
Mr.
Liu Peijie is currently responsible for
the overall management of SC
Working
Experience(s):
At
present Working in SC as legal
representative, executive director and general manager.
l
Supervisor:
Cui
Rui
SC is mainly engaged in manufacturing, processing and
selling of vacuum metallizer machine.
SC’s products mainly include:
Vacuum system
Rolling system
Electronic control system
Metallic induction style metallizer
Evaporation source, wire feed system
SC
sources its materials 95% from domestic market, and 5% from overseas market. SC
sells its products 80% in domestic market, and 20% 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.
Note: SC refused to release its main customers and
suppliers.
Trademarks
& patents
Registration no.:
6021417
Registration date:
2010-3-21
Trademark design: 
SC is known to
invest in the following company:
Qingzhou Yinuo
Packaging Material Co., Ltd. (literal translation)
------------------------------------------------
Reg. no.: 370781200034334
Incorporation date: 2013-11-11
legal representative: Cui Qiang
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 refused to disclose its
banking information.
Balance Sheet
Unit: CNY’000
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as of Dec. 31,
2014 |
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Cash & bank |
2,810 |
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Inventory |
9,980 |
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Accounts receivable |
0 |
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Advances to suppliers |
4,440 |
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------------------ |
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Current assets |
17,230 |
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Fixed assets net value |
17,500 |
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Projects under construction |
5,650 |
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Long-term investment |
4,420 |
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Intangible assets |
5,260 |
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------------------ |
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Total assets |
50,060 |
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============= |
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Short loans |
0 |
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3,300 |
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Advances from
clients |
18,240 |
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Tax payable |
120 |
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Other accounts payable |
26,970 |
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------------------ |
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Current liabilities |
48,630 |
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Long term liabilities |
0 |
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------------------ |
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Total liabilities |
48,630 |
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Equities |
1,430 |
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------------------ |
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Total liabilities & equities |
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============= |
Income Statement
Unit: CNY’000
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as of Dec. 31,
2014 |
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Turnover |
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Cost of goods
sold |
27,750 |
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Taxes
and additional of main operation |
350 |
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Sales
expense |
430 |
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Management
expense |
3,720 |
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Finance expense |
80 |
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Investment income |
160 |
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Non-operating income |
50 |
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Non-operating
expense |
80 |
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Profit before tax |
70 |
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Less: profit tax |
30 |
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Net profit |
40 |
Important Ratios
=============
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as of Dec. 31,
2014 |
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*Current ratio |
0.35 |
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*Quick ratio |
0.15 |
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*Liabilities to assets |
0.97 |
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*Net profit margin (%) |
0.12 |
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*Return on total assets (%) |
0.08 |
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*Inventory /Turnover ×365 |
113 days |
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*Accounts receivable/Turnover ×365 |
/ |
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*Turnover/Total assets |
0.64 |
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* Cost of goods sold/Turnover |
0.86 |
PROFITABILITY: AVERAGE
l The turnover of SC
appears average in its line.
l SC’s net profit
margin appears average.
l SC’s return on total
assets appears average.
l SC’s cost of goods
sold is average, comparing with its turnover.
LIQUIDITY: POOR
l The current ratio
of SC is maintained in a poor level.
l SC’s quick ratio
is maintained in a poor level.
l SC’s inventory
appears fairly large in 2014.
l SC has no accounts
receivable in 2014.
l SC has no
short-term loan in 2014.
l SC’s turnover is
in a fair level, comparing with the size of its total assets.
LEVERAGE: FAIR
l The debt ratio of
SC is high in 2014.
l 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 could be a threat to SC’s finical condition. Taking into
consideration of SC’s background and development history.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.67.04 |
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UK Pound |
1 |
Rs.101.67 |
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Euro |
1 |
Rs.73.93 |
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CNY |
1 |
Rs. 10.35 |
Note
: Above are approximate rates obtained from sources
believed to be correct
INFORMATION
DETAILS
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Analysis
Done by : |
DIV |
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Report
Prepared by : |
ASH |
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 |
-- |
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.