MIRA INFORM REPORT
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Report No. : |
355680 |
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Report Date : |
23.12.2015 |
IDENTIFICATION DETAILS
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Name : |
GUANGDONG SIMCHENG PLASTICS MACHINERY CO., LTD. |
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Registered Office : |
District A, Shi Shan Industry Zone, Nanhai District, Foshan, Guangdong
Province, 528225 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
28.01.2003 |
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Com. Reg. No.: |
440682000077155 |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
Manufacturing plastic machinery and equipment; selling plastic
products; importing and exporting commodities and technology. |
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No. of Employee : |
200 |
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 : |
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
GUANGDONG SIMCHENG PLASTICS MACHINERY CO., LTD.
DISTRICT A, SHI SHAN INDUSTRY ZONE, NANHAI DISTRICT, FOSHAN, GUANGDONG
PROVINCE, 528225 PR CHINA
TEL: 86 (0) 757-81207008/66862002 FAX:
86 (0) 757-81207001
EXECUTIVE
SUMMARY
INCORPORATION DATE :
JAN. 28, 2003
REGISTRATION NO. : 440682000077155
REGISTERED LEGAL FORM : ONE-PERSON LIMITED LIABILITY COMPANY
CHIEF EXECUTIVE : ZHANG CHUNHUA
(CHAIRMAN)
STAFF STRENGTH : 200
REGISTERED CAPITAL :
CNY 20,500,000
BUSINESS LINE :
MANUFACTURING & TRADING
TURNOVER : CNY 73,860,000 (AS OF DEC. 31, 2014)
EQUITIES : CNY 25,350,000
(AS OF DEC. 31, 2014)
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE : CNY 6.4769 = 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
SC was registered as limited liabilities company at local Administration
for Industry & Commerce (AIC - The official body of issuing and renewing
business license) on Jan. 28, 2003, and has been under present legal form since
2008.
Company Status: One-person Limited Liability Company Single person LLC refers to a
limited liability company set up by only one natural person or legal person
as the single shareholder of it. The minimum registered capital
of Single person LLC is CNY100,000. The shareholder’s capital contributes,
as set out by the articles of associations should be a lump-sum payment in
full. One natural person can only
invest in and set up one limited liability company, which is not permitted
to invest in and set up a new Single person LLC. As to any one-person limited
liability company, the sole-investor nature of the natural person or legal
person shall be indicated in the registration documents of the company and
shall be indicated in the business license thereof as well. The regulation of Single person
LLC should be set up by the shareholder The regulation of Single person
LLC has no shareholder meeting.
SC’s registered business scope includes manufacturing plastic machinery and
equipment; selling plastic products; importing and exporting commodities and
technology (excluding the items prohibited or limited by the country, with permit if needed).
SC is mainly engaged in manufacturing plastic machinery and equipment,
selling plastic products.
Zhang Chunhua is the legal representative, chairman and general manager
of SC at present.
SC is known to have approx. 200 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in the industrial zone of Foshan. SC’s
employee refused to release the detailed information of the premise.
http://www.s-c.cn/
The design is professional and the content is well organized. At present it is
in Chinese version.
E-mail: s-c@s-c.cn
; ga@s-c.cn
Changes
of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
2008-06-23 |
Legal form |
limited liabilities company |
Present one |
|
2013-06-21 |
Registered capital |
CNY 10,500,000 |
Present amount |
Organization Code: 74706722X
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Zhang Chunhua 100
Legal representative, chairman and general manager:
Zhang Chunhua is currently responsible for the overall management of SC.
Working
Experience(s):
At present Working
in SC as chairman, legal representative and general manager.
Supervisor:
Liang Bin
SC is mainly engaged in manufacturing plastic machinery and equipment,
selling plastic products.
SC’s products mainly include:
Multi-layer co-extruded film production line
Biaxial stretch film production line
Precision Accessories
SC sources its materials 70% from domestic market, and 30% from the
overseas market. SC sells 50% of its products in domestic market, and 50% to overseas market.
The buying terms of SC include Check, L/C, 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 main suppliers and clients.
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Registration No. |
7181083 |
7181084 |
13004859 |
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Registration Date |
2013-2-28 |
2010-7-21 |
2015-2-21 |
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Trademark Design |
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SC is not known to have any subsidiary at present.
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 declined to release its banking details.
Balance
Sheet
Unit: CNY’000
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|
As of Dec. 31, 2014 |
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Cash & bank |
4,140 |
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Notes receivable |
470 |
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Inventory |
41,860 |
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Accounts receivable |
28,670 |
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Advances to suppliers |
15,420 |
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Other receivables |
8,110 |
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Other current assets |
120 |
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------------------ |
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Current assets |
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Fixed assets net value |
29,310 |
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Projects under construction |
50 |
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Long-term deferred expense |
4,800 |
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Intangible assets |
7,050 |
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Long term investment |
0 |
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Other assets |
10 |
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------------------ |
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Total assets |
140,010 |
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============= |
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Short loans |
35,200 |
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Notes payable |
16,570 |
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Accounts payable |
9,660 |
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Advances from clients |
34,740 |
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Accrued payroll |
340 |
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Taxes payable |
300 |
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Other accounts payable |
12,590 |
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Other current liabilities |
0 |
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------------------ |
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Current liabilities |
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Long term loans |
1,290 |
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Long-term payable |
3,970 |
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Other liabilities |
0 |
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------------------ |
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Total liabilities |
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Equities |
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------------------ |
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Total liabilities & equities |
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Income
Statement
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Unit: CNY’000 |
as of Dec. 31, 2014 |
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Cost of goods
sold |
59,560 |
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Sales expense |
3,670 |
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Management expense |
6,140 |
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Finance expense |
2,820 |
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Profit before tax |
1,360 |
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Less: profit tax |
440 |
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Profits |
Important
Ratios
=============
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as of Dec. 31, 2014 |
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*Current ratio |
0.90 |
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*Quick ratio |
0.52 |
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*Liabilities to assets |
0.82 |
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*Net profit margin (%) |
1.25 |
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*Return on total assets (%) |
0.66 |
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*Inventory /Turnover ×365 |
207 days |
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*Accounts receivable/Turnover ×365 |
142 days |
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*Turnover/Total assets |
0.53 |
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* Cost of goods sold/Turnover |
0.81 |
PROFITABILITY:
AVERAGE
The turnover of SC appears average in its line.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a fair level.
SC’s quick ratio is maintained in a fair level.
The inventory of SC is large.
The accounts receivable of SC appears average.
SC’s short-term loan is large in 2014.
SC’s turnover is in a fair level, comparing with the size of its total
assets.
LEVERAGE: FAIR
The debt ratio of SC is high.
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 and short loans could be a threat to
SC’s financial condition.
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.10.23 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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KIN |
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Report Prepared
by : |
ANK |
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.