MIRA INFORM REPORT
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Report No. : |
357153 |
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Report Date : |
30.12.2015 |
IDENTIFICATION DETAILS
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Name : |
SHANDONG HUAYUN NEW
MATERIAL CO., LTD. |
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Registered Office : |
Jingbo Industry Park, Boxing Economic Development Zone, Boxing County, Binzhou, Shandong Province 256599 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
21.04.2003 |
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Com. Reg. No.: |
371625228005300 |
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Legal Form : |
Limited Liabilities Co. |
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Line of Business : |
Exporting self-made commodities; importing machinery equipment, spare parts,
raw materials needed by SC, excluding commodities and technologies prohibited
by the state; manufacturing and selling high polymer material, rolling
precision metal sheet and products; designing and installing steel structure.
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No. of Employees : |
194 |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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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 & address
SHANDONG HUAYUN NEW MATERIAL CO., LTD.
JINGBO INDUSTRY PARK, BOXING ECONOMIC
DEVELOPMENT ZONE, BOXING COUNTY, BINZHOU, SHANDONG PROVINCE 256599 PR CHINA
TEL: 86 (0) 543-2874558 FAX: 86 (0) 543-2874584
EXECUTIVE
SUMMARY
INCORPORATION DATE : APR. 21, 2003
REGISTRATION NO. :
371625228005300
REGISTERED LEGAL FORM :
LIMITED LIABILITIES CO.
CHIEF EXECUTIVE :
MR. WANG LIANQIAO (CHAIRMAN)
STAFF STRENGTH :
194
REGISTERED CAPITAL : CNY 116,660,000
BUSINESS LINE :
MANUFACTURE & TRADE
TURNOVER :
CNY 1,241,750,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY -46,680,000 (AS OF DEC. 31, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : Fair
OPERATIONAL TREND : Fair
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.48 = 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 a Limited liabilities co. at local Administration
for Industry & Commerce (AIC - The official body of issuing and renewing
business license) on Apr. 21, 2003.
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 exporting self-made commodities;
importing machinery equipment, spare parts, raw materials needed by SC,
excluding commodities and technologies prohibited by the state; manufacturing
and selling high polymer material, rolling precision metal sheet and products;
designing and installing steel structure.
SC is mainly engaged in manufacturing and selling sheet metal.
Mr. Wang Lianqiao is the legal representative, chairman and general
manager of SC at present.
SC is known to have approx. 194 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
Boxing County. The detailed premise information is unknown.
http://www.sdhyxcl.com/ The design is professional and the content is
well organized. At present the web site is in Chinese, English and Russian
versions.
Email: huayunxcl@huayunxcl.com
Changes of its
registered information are as follows:
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Date of change |
Item |
Before the change |
After the change |
|
Unknown |
Shareholdings |
Liu Jianquan 2.32% Liu Xiugang 0.28% Wang Lianqiao 71.64% Wang Qingwei 25.76% |
Wang Lianqiao 71.64% Wang Qingwei 28.36% |
|
2014-9 |
Shareholdings |
Wang Lianqiao 71.64% Wang Qingwei 28.36% |
Present ones |
SC has passed the approval of ISO 14001 Environmental Management System
and ISO 9001 Quantity Management System.
There is no record of litigation till now.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Wang Lianqiao 90
Zhu Na 10
Legal Representative,
Chairman and General Manager:
Mr. Wang Lianqiao is currently responsible for the overall management of
SC.
Working Experience(s):
At present Working in SC as legal representative,
chairman and general manager.
Supervisor:
Wang Qingwei
Directors:
Liu Xiugang
Wang Zengping
SC is mainly engaged in manufacturing and selling sheet metal.
SC’s products mainly include: galvanized sheet, color-coated sheet.
SC sources its materials 60% from domestic market and 40% from overseas
market. SC sells 70% of its products in domestic market and 30% 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 T/T, L/C, Check and Credit of 30-60 days.
Note: SC declined to release its major suppliers and clients.
SC is not known to have the 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.
The banking information of SC is unknown.
Financial Summary
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Unit: CNY’000
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As of Dec. 31, 2014 |
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Total liabilities |
997,840 |
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Equities |
-46,680 |
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-------------- |
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Total liabilities & equities |
951,160 |
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========= |
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Turnover |
1,241,750 |
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Profits |
-55,730 |
Note: SC’s
management refused to release its detailed financial reports.
Important Ratios
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as of Dec. 31, 2014 |
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*Liabilities to assets |
1.05 |
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*Net profit margin (%) |
-4.49 |
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*Return on total assets (%) |
-5.86 |
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*Turnover/Total assets |
1.31 |
PROFITABILITY:
FAIR
The turnover of SC appears good in its line.
SC’s net profit margin is fair.
SC’s return on total assets is fair.
SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: POOR
The debt ratio of SC is too high.
The risk for SC to go bankrupt is high.
Overall financial condition of the SC: Fair.
SC is considered medium-sized in its line with fair financial
conditions.
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
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US Dollar |
1 |
Rs.66.37 |
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|
1 |
Rs.98.91 |
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Euro |
1 |
Rs.72.85 |
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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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KAR |
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Report Prepared
by : |
TPT |
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 |
-- |
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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.