MIRA INFORM REPORT
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Report No. : |
334360 |
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Report Date : |
31.07.2015 |
IDENTIFICATION DETAILS
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Name : |
HUNAN MEC MACHINERY & ELECTRONICS IMP. & EXP. CORPORATION |
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Registered Office : |
5/F, No. 98 Wuyi Road, Changsha, Hunan Province 410001 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
18.01.2004 |
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Com. Reg. No.: |
430000000004560 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Selling machinery, instrument, hardware, automotive (excluding small
car), automotive parts, computer and its outside parts, computer consumable
material, textile products, general merchandise, building materials and
mineral products, chemical raw materials, metallic materials, minerals;
importing and exporting various goods and technology, excluding those limited
and prohibited goods and technology. (with permit if needed). |
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No. of Employees : |
33 |
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 & address
HUNAN MEC MACHINERY & ELECTRONICS
IMP. & EXP. CORPORATION
5/F, NO. 98 WUYI ROAD, CHANGSHA, HUNAN PROVINCE 410001 PR CHINA
TEL: 86 (0) 731-85725660/82285108/82280690
FAX: 86 (0) 731-82285107
EXECUTIVE
SUMMARY
DATE OF REGISTRATION :
JANUARY 18, 2004
REGISTRATION NO. :
430000000004560
LEGAL FORM :
LIMITED LIABILITY COMPANY
CHIEF EXECUTIVE :
PAN XINMING (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 10,000,000
STAFF :
33
BUSINESS CATEGORY : TRADING
REVENUE :
CNY 137,322,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY 9,912,000 (AS OF DEC. 31, 2014)
WEBSITE :
WWW.CNMEC.COM.CN
E-MAIL :
HNWMJDGS@VIP.163.COM
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIR
OPERATIONAL TREND :
ORDINARY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.21 = USD 1
Adopted
abbreviations (as follows)
SC - Subject Company (the company inquired by you)
N/A – Not available
CNY – China Yuan Ren Min Bi
OPERATIONAL
TREND & GENERAL REPUTATION
This section aims at indicating the relative positions of SC in respect
of its operational trend & general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not
yet be determined
Not yet be determined
LEGAL STATUS & HISTORY
SC was established as a limited liabilities company of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.:
430000000004560 on January 18, 2004.
SC’s Organization Code Certificate No.: 75801241-9
SC’s Tax No.: 430102758012419
SC’s registered capital: CNY 10,000,000
SC’s paid-in capital: CNY 10,000,000
Registration Change Record:-
|
Date |
Change of
Contents |
Before the
change |
After the change |
|
2005-2-4 |
Registered Capital |
CNY 2,000,000 |
CNY 6,000,000 |
|
2005-11-16 |
Registered Capital |
CNY 6,000,000 |
CNY 12,000,000 |
|
2007-7-27 |
Registered Capital |
CNY 12,000,000 |
CNY 20,000,000 |
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Registration No. |
4300002005256 |
430000000004560 |
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2009-3-9 |
Shareholder (s) (% of Shareholding) |
Hunan Machinery & Electronics Imp. & Exp. Corp. 0.90% Zhang Jiangbo 91.75% Chen Libin 1.00% Other 32 individuals 6.35% |
Zhang Jiangbo 91.30% Chen Libin 1% Pan Xinming 1% Li Yuehui 1% Peng Qiang 1.15% Other 31 individuals 4.55% |
|
2012-5 |
Registered Capital |
CNY 20,000,000 |
CNY 10,000,000 |
|
Shareholder (s) (% of Shareholding) |
Zhang Jiangbo 91.30% Chen Libin 1% Pan Xinming 1% Li Yuehui 1% Peng Qiang 1.15% Other 31 individuals 4.55% |
Zhang Jiangbo 82.6% Chen Libin 2% Pan Xinming 2% Li Yuehui 2% Peng Qiang 2.3% Other 31 individuals 9.1% |
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2013-4 |
Shareholder (s) (% of Shareholding) |
Zhang Jiangbo 82.6% Chen Libin 2% Pan Xinming 2% Li Yuehui 2% Peng Qiang 2.3% Other 31 individuals 9.1% |
Zhang Jiangbo 82.6% Pan Xinming 2.6% Chen Libin 2% Wang Li 2% Zhang Ping 0.8 Other 30 individuals 10% |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of
Shareholder (s) |
% of
Shareholding |
|
Zhang Jiangbo |
82.6 |
|
Pan Xinming |
2.6 |
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Chen Libin |
2 |
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Wang Li |
2 |
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Zhang Ping |
0.8 |
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Other 30 individuals |
10 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Pan Xinming |
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Director |
Wang Li |
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Zhang Jiangbo |
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Chen Libin |
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Zhang Ping |
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Supervisor |
Wu Yuke |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Zhang Jiangbo 82.6
Pan Xinming 2.6
Chen Libin 2
Wang Li 2
Zhang Ping 0.8
Other 30 individuals 10
MANAGEMENT
Pan Xinming, Legal Representative and Chairman
-----------------------------------------------------------------------------
Gender: M
Age: 62
Qualification: University
Working experience (s):
From 2004 to present, working in SC as legal representative and chairman
Director
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Wang Li
Zhang Jiangbo
Chen Libin
Zhang Ping
Supervisor
--------------
Wu Yuke
BUSINESS OPERATION
SC’s registered business scope includes selling machinery, instrument,
hardware, automotive (excluding small car), automotive parts, computer and its
outside parts, computer consumable material, textile products, general
merchandise, building materials and mineral products, chemical raw materials,
metallic materials, minerals; importing and exporting various goods and
technology, excluding those limited and prohibited goods and technology. (with
permit if needed).
SC is mainly engaged in international trade.
SC’s products mainly include:
1) Tools
Pliers & vices, plumingtools, wrenches, hammer, screwdrivers,
trowel, chisel, saw, snip, hand puller, hand cable winch, tie-down belt,
trailer jack, earth clamp, inflator, metal fittings, diamond tools, garden tools,
drills series, measuring tools and so on.
2) Machinery
Agriculture machinery, food processing machinery, packing machinery,
cutting machinery, construction machinery.
3) Chemical industry inorganic products
Enamel pigment, ceramic body stain, ceramic glaze stain, ceramic
inclusion stain. lead oxide red, lead oxide yellow, iron oxide red, iron oxide
yellow, iron oxide black, cadmium yellow and other pigments; dyestuff, chemical
auxiliary. lithopone, titanium dioxide,
anganese sulphate, manganese carbonate, electrolytic manganese metals,
electrolytic manganese dioxide, zinc oxide, zinc sulphate, zinc chloride,
barium carbonate, barium chloride, barium hydroxide, sodium sulphate, sodium
fluoride, sodium ilicofluoride, sodium hydrosulfite and other inorganic
products.
4) O.E.M
Represent tens of export-oriented factories, we offer one-stop o.e.m.
service, supply your demands according to your drawings & samples.
SC sources its products 95% from domestic market, and 5% from overseas
market. SC sells 5% of its products in domestic and 95% to the overseas market,
mainly Southeast Asia and Europe.
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.
*Major Customers:
-----------------------
Primeline Tools Inc.
Kenneth Swick Inc.
Transformadores Lider S.A.
Staff & Office:
--------------------------
SC is known to have approx. 33 staff at present.
SC rents an area as its operating office of approx. 300 sq. meters at
the heading address.
RELATED COMPANY
SC is not known to have any subsidiary at present.
PAYMENT
Overall payment
appraisal: ( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be 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.
BANKING
Basic Bank:
China Merchants Bank Changsha Branch
AC#: 6181067810002
FINANCIALS
Balance Sheet
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Unit: CNY’000 |
As of Dec. 31, 2013 |
|
5,060 |
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Notes receivable |
0 |
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Accounts receivable |
7,170 |
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Advances to suppliers |
36,000 |
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Other receivable |
3,160 |
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Inventory |
310 |
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Non-current assets within one year |
0 |
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Other current assets |
30 |
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------------------ |
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Current assets |
51,730 |
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Fixed assets |
40 |
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Long-term prepaid expenses |
0 |
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Deferred income tax assets |
0 |
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Other non-current assets |
10 |
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------------------ |
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Total assets |
51,780 |
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============= |
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Short-term loans |
0 |
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Accounts payable |
6,210 |
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Wages payable |
-50 |
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Taxes payable |
10 |
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Advances from clients |
28,710 |
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Other payable |
6,970 |
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Other current liabilities |
0 |
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------------------ |
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Current liabilities |
41,850 |
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Non-current liabilities |
0 |
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Total liabilities |
41,850 |
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Equities |
9,930 |
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------------------ |
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Total liabilities & equities |
51,780 |
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Income Statement
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Unit: CNY’000 |
As of Dec. 31, 2013 |
|
Revenue |
125,760 |
|
Cost of sales |
118,830 |
|
Sales expense |
6,050 |
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Management expense |
610 |
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Finance expense |
10 |
|
Profit before tax |
12 |
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Less: profit tax |
3 |
|
9 |
Financial Summary
|
Unit: CNY’000 |
As of Dec. 31, 2014 |
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Total assets |
45,614 |
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------------- |
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Total liabilities |
35,702 |
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Equities |
9,912 |
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------------- |
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Revenue |
137,322 |
|
Profits |
-20 |
Important Ratios
=============
|
|
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
|
*Current ratio |
1.24 |
-- |
|
*Quick ratio |
1.23 |
-- |
|
*Liabilities to assets |
0.81 |
0.78 |
|
*Net profit margin (%) |
0.01 |
-0.01 |
|
*Return on total assets (%) |
0.02 |
-0.04 |
|
*Inventory / Revenue ×365 |
1 day |
-- |
|
*Accounts receivable/ Revenue ×365 |
21 days |
-- |
|
*Revenue/Total assets |
2.43 |
3.01 |
|
*Cost of sales / Revenue |
0.94 |
-- |
FINANCIAL COMMENTS
PROFITABILITY:
FAIR
The revenue of SC appears fairly good in its line.
SC’s net profit margin is fair.
SC’s return on total assets is fair.
SC’s cost of sales is fairly high, comparing with its revenue.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a fairly good level.
The inventory of SC appears small.
The accounts receivable of SC is maintained in an average level.
SC has no short-term loans.
SC’s revenue is in an average level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average.
The risk for SC to go bankrupt is above average.
Overall financial condition of the SC: Fair.
CONCLUSIONS
SC is considered small-sized in its line with fair financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.00 |
|
|
1 |
Rs.99.83 |
|
Euro |
1 |
Rs.70.07 |
INFORMATION DETAILS
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Analysis Done by
: |
KAS |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
|
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 |
|
|
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.