MIRA INFORM REPORT
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Report No. : |
355695 |
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Report Date : |
23.12.2015 |
IDENTIFICATION DETAILS
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Name : |
FORSUN ULTRA-HARD MATERIAL INDUSTRY
CO., LTD. |
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Registered Office : |
Lugu International Industrial Area, No. 229
Tongzipo West Road, National Hi-Tech Industrial Development Zone, Yuelu
District, Changsha City, Hunan Province, 410205 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
10.01.2001 |
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Com. Reg. No.: |
430193000002340 |
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Legal Form : |
Limited Liabilities Co. |
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Line of Business : |
Subject engaged in R&D, manufacturing and selling
superhard materials and superhard materials products, superhard materials of raw
and auxiliary materials, geological drilling machinery and accessories,
drilling equipment; selling metal materials, daily necessities, chemical
products (excluding hazardous chemicals and monitoring), mechanical
electrical products; technical consultation of related products; indoor
plumbing (excluding pressure pipeline) installation and drilling services;
self-management and agent of import and export business of all kinds of goods
and technology |
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No. of Employee : |
108 |
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 : |
No complaints |
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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
FORSUN ULTRA-HARD MATERIAL INDUSTRY CO., LTD.
LUGU
INTERNATIONAL INDUSTRIAL AREA, NO. 229 TONGZIPO WEST ROAD, NATIONAL HI-TECH INDUSTRIAL
DEVELOPMENT ZONE, YUELU DISTRICT, CHANGSHA CITY, HUNAN PROVINCE, 410205 PR
CHINA
TEL:
86 (0) 731-84254020/88915885 FAX: 86 (0) 731-84252208
EXECUTIVE
SUMMARY
INCORPORATION
DATE : JAN. 10, 2001
REGISTRATION
NO. : 430193000002340
REGISTERED
LEGAL FORM : LIMITED LIABILITIES CO.
CHIEF
EXECUTIVE : MR. LI
JIANQIANG (LEGAL REPRESENTATIVE)
STAFF
STRENGTH : 108
REGISTERED
CAPITAL : CNY 2,780,000
BUSINESS
LINE :
MANUFACTURING AND TRADING
TURNOVER : CNY 34,580,000 (AS OF DEC. 31, 2014)
EQUITIES : CNY
26,130,000 (AS OF DEC. 31, 2014)
PAYMENT
: NO COMPLAINTS
MARKET
CONDITION : AVERAGE
FINANCIAL
CONDITION : FAIRLY GOOD
OPERATIONAL
TREND : STEADY
GENERAL
REPUTATION : AVERAGE
EXCHANGE
RATE : CNY 6.4814 = 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’s complete address should be the heading one.
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 Jan. 10, 2001.
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 R&D, manufacturing and selling superhard
materials and superhard materials products, superhard materials of raw and
auxiliary materials, geological drilling machinery and accessories, drilling
equipment; selling metal materials, daily necessities, chemical products
(excluding hazardous chemicals and monitoring), mechanical electrical products;
technical consultation of related products; indoor plumbing (excluding pressure
pipeline) installation and drilling services; self-management and agent of
import and export business of all kinds of goods and technology (excluding the
goods and technology limited or prohibited by state). (With permit if needed)
SC
is mainly engaged in manufacturing and selling drilling tools equipment and
accessories.
Mr.
Li Jianqiang is the legal representative and chairman of SC at present.
SC
is known to have approx. 108 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the national hi-tech industrial development
zone of Changsha. The detailed information of the premise is unspecified.
www.forsun-tools.com
The design is professional and the content is well organized. At present it is
in English, Russian, Spanish and Chinese versions.
E-mail:
info@forsuntools.com
No
significant changes were found during our checks with the local Administration for
Industry and Commerce.
Organization
Code: 722517087
For
the past two years there is no record of litigation.
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Tan
Zhongcheng 24
Li
Jianqiang 24
Sun
Shanghua 24
Xiao
Junmei 24
Li
Tao 4
Legal representative and Chairman:
Mr.
Li Jianqiang is currently responsible for the overall management of SC.
Working
Experience(s):
At
present Working in SC as
legal representative and chairman
Directors:
Sun
Shanghua
Xiao
Junmei
Supervisor:
Li
Tao
SC
is mainly engaged in manufacturing and selling drilling tools equipment and
accessories.
SC’s
products mainly include: Diamond Core Bits, Reaming Shells, Core Barrels, Drill
Rods, Casings, other Drilling Accessories and Drilling Rigs
SC
sources its materials 95% from domestic market, and 5% from overseas market. SC
sells 30% of its products in domestic market, and 70% 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 major suppliers and customers.
TRADEMARKS & PATENTS
Registration No. 3762335
Registration Date 2005-12-28
Trademark Design 
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.
Bank
of China Lugu Sub-branch
AC#:
597657362209
Relationship:
Normal.
Balance Sheet
Unit:
CNY’000
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as of Dec. 31, 2014 |
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Cash & bank |
11,750 |
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Inventory |
470 |
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Accounts receivable |
4,950 |
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Advances to suppliers |
1,800 |
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Other receivables |
8,660 |
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Notes receivable |
200 |
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------------------ |
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Current assets |
27,830 |
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Fixed assets net value |
4,650 |
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Long term investment |
0 |
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Projects under construction |
50 |
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Intangible assets and other assets |
0 |
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------------------ |
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Total assets |
32,530 |
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============= |
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Short loans |
0 |
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Accounts payable |
2,200 |
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Accounts from customers |
1,840 |
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Taxes payable |
130 |
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Other payable |
440 |
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Dividends payable |
1,790 |
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------------------ |
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Current liabilities |
6,400 |
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Long term liabilities |
0 |
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------------------ |
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Total liabilities |
6,400 |
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Equities |
26,130 |
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------------------ |
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Total liabilities & equities |
32,530 |
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============= |
Income Statement
Unit:
CNY’000
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as of Dec. 31, 2014 |
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Turnover |
34,580 |
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Cost of goods sold |
23,270 |
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Taxes and additional of main operation |
350 |
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Sales expense |
1,990 |
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Management expense |
5,090 |
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Finance expense |
-280 |
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Non-operation income |
30 |
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Non-operating expenses |
0 |
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Profit before tax |
4,190 |
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Less: profit tax |
440 |
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Profits |
3,750 |
Important Ratios
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as of Dec. 31, 2014 |
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*Current ratio |
4.35 |
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*Quick ratio |
4.28 |
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*Liabilities to assets |
0.20 |
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*Net profit margin (%) |
10.84 |
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*Return on total assets (%) |
11.53 |
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*Inventory /Turnover ×365 |
5 days |
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*Accounts receivable/Turnover ×365 |
53 days |
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*Turnover/Total assets |
1.06 |
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* Cost of goods sold/Turnover |
0.67 |
PROFITABILITY: FAIRLY GOOD
The
turnover of SC appears average in its line.
SC’s
net profit margin is good.
SC’s
return on total assets is good.
SC’s
cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIRLY GOOD
The
current ratio of SC is maintained in a fairly good level.
SC’s
quick ratio is maintained in a fairly good level.
SC’s
inventory appears small.
SC’s
accounts receivable appears average.
SC
has no short-term loan in 2014.
SC’s
turnover is in an average level, comparing with the size of its total assets.
LEVERAGE: FAIRLY GOOD
The
debt ratio of SC is low.
The
risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly good.
SC
is considered medium-sized in its line with fairly good financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.30 |
|
|
1 |
Rs.98.71 |
|
Euro |
1 |
Rs.72.33 |
|
CNY |
1 |
Rs.10.22 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
TRU |
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.