MIRA INFORM REPORT
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Report No. : |
303378 |
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Report Date : |
21.01.2015 |
IDENTIFICATION DETAILS
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Name : |
SHANDONG ROPE NET MACHINERY CO., LTD. |
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Registered Office : |
East High Tech Development Zone, Taian,
Shandong Province 271000 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
28.11.2007 |
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Com. Reg. No.: |
370900200000486 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
· Engaged in manufacturing and Selling Rope, Net, Line Machinery, Chemical Fiber Machinery and General Components · Engaged in manufacturing and Selling Rope, Net and Line Products · Engaged in selling Plastic Products and Chemical Fiber Products Subject product ranges
includes Rope Machinery & Lab Machinery |
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No of Employees : |
35 (Approximately) |
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 – September 30, 2014
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Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
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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. 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 and expanded the daily trading
band within which the RMB is permitted to fluctuate. 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 2013 stood as the second-largest
economy in the world after the US, having surpassed Japan in 2001. The dollar
values of China's agricultural and industrial output each exceed those of the
US; China is second to the US in the value of services it produces. Still, per
capita income is below the world average. 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 2011 more
than 250 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
|
Source : CIA |
Company
name & address
SHANDONG
ROPE NET MACHINERY CO., LTD.
EAST HIGH TECH
DEVELOPMENT ZONE, TAIAN,
SHANDONG PROVINCE 271000 PR CHINA
TEL: 86 (0)
538-6262977/8512966 FAX: 86 (0)
538-8669066
EXECUTIVE
SUMMARY
INCORPORATION DATE : NOV. 28, 2007
REGISTRATION NO. : 370900200000486
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
CHIEF EXECUTIVE : MR. GONG YUDONG (CHAIRMAN)
STAFF STRENGTH :
35
REGISTERED CAPITAL : CNY 5,000,000
BUSINESS LINE :
MANUFACTURING & TRADING
TURNOVER :
CNY 12,990,000 (AS OF DEC. 31,
2013)
EQUITIES :
CNY 4,370,000 (AS OF DEC. 31, 2013)
PAYMENT :
Slow but Correct
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.22= 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 Nov. 28, 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 manufacturing and selling rope, net, line
machinery, chemical fiber machinery and general components; manufacturing and
selling rope, net and line products; selling plastic products and chemical
fiber products; import and export business. (with permit if needed).
SC is mainly
engaged in manufacturing and selling machinery products.
Mr. Gong Yudong is
legal representative and chairman of SC at present.
SC is known to
have approx. 35 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in the development zone of Taian. The detailed
premise information is unspecified.
http://www.ropenetmachine.com/ The design is professional and the content is
well organized. At present the web site is in Chinese and English versions.
E-mail: amy@ropeking.com
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
Organization code: 669324541
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name
%
of Shareholding
Taian Rope Net Plastic Co., Ltd. 61.7
Sun Qijun 3.62
Gong Yudong 25.4
Hu Yunjun 9.28
Taian Rope Net Plastic Co., Ltd.
========================
INCORPORATION DATE : apr. 11, 2002
REGISTRATION NO. : 370903228170127
REGISTERED LEGAL FORM : Limited liabilities co.
CHIEF EXECUTIVE : Mr. Shen ming (legal representative)
REGISTERED CAPITAL : CNY 17,647,000
Tel: 86 (0) 538-8512966
Fax: 86 (0) 538-8502249
Legal
representative and chairman:
Mr. Gong Yudong is currently responsible for the overall management of SC.
Working
Experience(s):
At present Working in SC as legal representative and chairman.
General manager:
Mr. Shen Ming is currently responsible for the daily management of SC.
Working
Experience(s):
At present Working in SC as general manager.
Also working in
Taian Rope Net Plastic Co., Ltd., Shandong Rope Technology Co., Ltd. as legal
representative.
Supervisor:
Qiu Jianping
Directors:
Sun Qijun
Qiu Yanping
SC is mainly
engaged in manufacturing and selling machinery products.
SC’s products mainly include rope machinery & lab machinery
SC sources its
materials 100% from domestic market. SC sells 5% of its products in domestic
market and 95% 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 declined to release its major suppliers and clients.
Trademark & Patents
No record
Ji’nan
Rope Net Rope industry Co., Ltd.
=============================
Incorporation Date: 2009-07-09
Registration No.: 370181200018897
Legal representative: Qiao Xiancun
Shandong
Rope Technology Co., Ltd.
===========================
Incorporation Date: 2013-01-22
Registration No.: 370900200037230
Legal representative: Shen Ming
Overall payment appraisal:
( ) Excellent (
) Good (X) Slow but
Correct ( ) 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 accountant
refused to release the bank details.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2013 |
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Cash & bank |
770 |
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Inventory |
3,240 |
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Accounts
receivable |
370 |
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Other
receivables |
660 |
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Other current
assets |
10 |
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------------------ |
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Current assets |
5,050 |
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Fixed assets net
value |
800 |
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Long term
investment |
0 |
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Projects under
construction |
0 |
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Intangible and
other assets |
10 |
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------------------ |
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Total assets |
5,860 |
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=========== |
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Short loan |
0 |
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Accounts payable |
1,620 |
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Advances from
clients |
0 |
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Taxes payable |
-170 |
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Other Accounts
payable |
40 |
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Other current
liabilities |
0 |
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------------------ |
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Current
liabilities |
1,490 |
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Long term liabilities |
0 |
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------------------ |
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Total
liabilities |
1,490 |
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Equities |
4,370 |
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------------------ |
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Total
liabilities & equities |
5,860 |
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=========== |
Income Statement
Unit: CNY’000
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As of Dec. 31,
2013 |
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Turnover |
12,990 |
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Cost of goods sold |
10,410 |
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Sales expense |
1,220 |
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Management expense |
1,270 |
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Finance expense |
160 |
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Profit before tax |
-110 |
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Less: profit tax |
20 |
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Profits |
-130 |
Important
Ratios
=============
|
|
As of Dec. 31, 2013 |
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*Current ratio |
3.39 |
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*Quick ratio |
1.21 |
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*Liabilities
to assets |
0.25 |
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*Net profit
margin (%) |
-1.00 |
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*Return on
total assets (%) |
-2.22 |
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*Inventory
/Turnover ×365 |
92 days |
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*Accounts
receivable/Turnover ×365 |
11 days |
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*Turnover/Total
assets |
2.22 |
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* Cost of
goods sold/Turnover |
0.80 |
PROFITABILITY:
FAIR
l The turnover of SC
appears average.
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 fairly
good level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears large.
l
The accounts receivable of SC appears average.
l
SC has no short-term loan in 2013.
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 low.
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 inventory could be a threat to SC’s financial
condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.85 |
|
UK Pound |
1 |
Rs.93.27 |
|
Euro |
1 |
Rs.71.57 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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|
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Report Prepared
by : |
MNL |
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 |
|
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.