MIRA INFORM REPORT
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Report No. : |
330020 |
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Report Date : |
07.07.2015 |
IDENTIFICATION DETAILS
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Name : |
SHANDONG YINBAO TYRE GROUP CO LTD |
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Registered Office : |
Taitou Industry
Zone, Shouguang, Shandong
Province, 262735 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
15.04.2013 |
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Com. Reg. No.: |
370783228026301 |
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Legal Form : |
Limited Liabilities Co. |
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Line of Business : |
Manufacturing and Sales of Tyres and Rubber Products. |
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No. of Employees : |
750 |
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. 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 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 that year... 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 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 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
Shandong Yinbao Tyre Group
Co., Ltd.
taitou industry zone, shouguang,
shandong Province, 262735 PR CHINA
TEL: 86 (0)
536-2150610/2150666 FAX: 86 (0)
536-2154889
EXECUTIVE
SUMMARY
INCORPORATION DATE :
APR. 15, 2003
REGISTRATION NO. : 370783228026301
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
STAFF STRENGTH : 750
REGISTERED CAPITAL :
CNY 120,000,000
BUSINESS LINE :
MANUFACTURING & TRADING
TURNOVER : CNY 836,680,000
(AS OF DEC. 31, 2014)
EQUITIES : CNY 120,540,000
(AS OF DEC. 31, 2014)
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION :
FAIR
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE : CNY 6.2052 = 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
company at local Administration for Industry & Commerce (AIC - The official
body of issuing and renewing business license)
on Apr. 15, 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 manufacturing and sales of tyre
(excluding bias tyre) and rubber products; engaging in importing and exporting
business of enterprise self-produced products and technology (with permit if
needed).
SC is mainly engaged in manufacturing and sales of tyres and rubber
products.
Mr. Liu Yonghua is
legal representative and executive director of SC at present.
SC is known
to have approx. 750 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in industrial zone of Shouguang. Detailed premise
information is not available at present.
http://www.yinbaotyre.com/
The design is professional and the content is well organized. At present it is in
English and Chinese versions.
Email: info@yinbaotyre.com;
15263616768@163.com
For the past two years
there is no record of litigation.
No significant changes were found during our checks with the local
Administration for Industry and Commerce.
Organization Code:
751780909
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Liu Yongxiang 33.33
Liu Yonghua 66.67
l Legal
Representative and Executive Director:
Mr. Liu Yonghua is currently
responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as legal representative and executive director.
Also
working in Shandong Shouguang Yinbao Rubber Industry Co.,
Ltd. (Literal Translation) and Shandong Yinbao Tyre Group Sales Co., Ltd.
(Literal Translation) as legal representative, Shandong New Continet Tire Co., Ltd. as chairman, etc.
l Manager:
Liu Qi is currently
responsible for the daily management of SC.
Working Experience(s):
At present Working in SC as manager.
Also
working in Shandong New Continet Tire Co., Ltd. and Shouguang
Yinbao Logistics Co., Ltd. (Literal Translation) as legal representative, etc.
l
Supervisor:
Liu Yongxiang
SC is mainly engaged in manufacturing and sales of tyres and rubber products.
SC’s products mainly
include: TBR tires, BIAS tires, and special tires, etc.
SC sources its materials 80% from domestic
market, and 20% from overseas market. SC sells 50% of its products to overseas
market, and 50% of its products in domestic 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’s management declined to release its customer and supplier
details.
TRADEMARKS &
PATENTS
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Registration No. |
7442667 |
1102140 |
3160520 |
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Registration Date |
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Trademark Design |
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Subsidiary
Companies
Shandong Shouguang Yinbao Rubber Industry Co.,
Ltd. (Literal Translation)
=============================
Incorporation Date:
Registration No.: 370783228000657
Chief Executive: Mr. Liu Yonghua
Registered Capital: CNY 21,680,000
Shandong New Continet Tire Co., Ltd.
=============================
Incorporation Date:
Registration No.: 371300200044939
Chief Executive: Liu Qi
Registered Capital: CNY 200,000,000
Website:
http://www.snctire.com/
Shandong Yinbao Tyre Group Sales Co., Ltd.
(Literal Translation)
=============================
Incorporation Date:
Registration No.: 370783228070732
Chief Executive: Mr. Liu Yonghua
Registered Capital: CNY 3,000,000
Shouguang Yinbao Logistics Co., Ltd. (Literal Translation)
===========================
Incorporation Date:
Registration No.: 370783200027515
Chief Executive: Liu Qi
Registered Capital: CNY 1,000,000
Etc.
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 accountant refused
to release the bank details.
Balance Sheet
Unit: CNY’000
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As of Dec. 31, 2014 |
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Current assets |
793,190 |
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------------------ |
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Total assets |
968,670 |
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=========== |
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Current liabilities |
848,130 |
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Long term liabilities |
0 |
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------------------ |
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Total liabilities |
848,130 |
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Equities |
120,540 |
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------------------ |
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Total liabilities &
equities |
968,670 |
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=========== |
Income Statement
Unit: CNY’000
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As of Dec. 31, 2014 |
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Turnover |
836,680 |
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Profit before tax |
-16,720 |
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Less: profit tax |
0 |
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Profits |
-16,720 |
Note: We contacted with SC’s accountant, but he refused to release the
financial details.
Important Ratios
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As
of Dec. 31, 2014 |
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*Current ratio |
0.94 |
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*Liabilities to assets |
0.88 |
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*Net profit margin (%) |
-2.00 |
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*Return on total assets (%) |
-1.73 |
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*Turnover/Total assets |
0.86 |
PROFITABILITY:
FAIR
l The turnover of SC
appears fairly good in its line.
l SC’s net profit
margin is fair.
l SC’s return on
total assets is fair.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair
level.
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.
l
The risk for SC to go bankrupt is average.
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
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Indian Rupees |
|
US Dollar |
1 |
Rs.63.58 |
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|
1 |
Rs.99.11 |
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Euro |
1 |
Rs.70.29 |
INFORMATION DETAILS
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Analysis Done by
: |
KAS |
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Report Prepared
by : |
NIT |
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.