MIRA INFORM REPORT
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Report No. : |
325415 |
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Report Date : |
03.06.2015 |
IDENTIFICATION DETAILS
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Name : |
ZHUJI ICHOICE
MAGTECH CO., LTD. |
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Registered Office : |
Zhaojiabu, Jiyang Street, Zhuji, Zhejiang Province 311800 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
18.04.2002 |
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Com. Reg. No.: |
330600400009969 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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Line of Business : |
Manufacturing and selling magnetic materials, motors, speakers &
accessories, and other magnetic application product. |
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No. of Employees : |
262 |
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 : |
No Complaints |
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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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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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. 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.
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Source
: CIA |
Company
Name and address
ZHUJI ICHOICE MAGTECH CO., LTD.
zhaojiabu, jiyang
street
zhuji, zhejiang
Province 311800 PR China
TEL: 86 (0)
575-87768898/87329276/87329217/87327289
FAX: 86 (0)
575-87327989
***Note: SC’s complete
name should be the heading one, instead of the given name-Zhuji Choice Magtech Co., Ltd.
EXECUTIVE
SUMMARY
Date of Registration : april 18, 2002
REGISTRATION NO. : 330600400009969
LEGAL FORM : Chinese-foreign equity joint venture
enterprise
REGISTERED CAPITAL : usd 1,350,000
staff : 262
BUSINESS CATEGORY : manufacturing & TRADING
REVENUE : CNY 107,220,000 (AS OF DEC. 31, 2014)
EQUITIES : CNY 42,950,000
(AS OF DEC. 31, 2014)
WEBSITE : www.hichoice.net
E-MAIL : cmzhao@winchoice.cn
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : FAIRLY
STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.20 = 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 Chinese-foreign equity joint venture
enterprise of PRC with State Administration of Industry & Commerce
(SAIC) under registration No.: 330600400009969
on April 18, 2002.
SC’s Organization Code Certificate No.:
73689853-8
SC’s Tax No.: 330681736898538
SC’s registered capital: usd 1,350,000
SC’s paid-in capital: usd 1,350,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2005-9-2 |
Legal
Representative |
Ke Yapa |
Zhao Changmiao |
|
2008-5-23 |
Registration No. |
001942 |
330600400009969 |
|
Registered
Capital |
USD 600,000 |
usd 1,350,000 |
|
|
% of
Shareholding |
Hangzhou HC
Electron Co., Ltd. 3.33% Zhuji Best
Choice Magnet & Electron Co., Ltd. 6.67% Italy CIBAS
S.R.S CIBAS S.R.S 90% |
Hangzhou HC
Electron Co., Ltd. 1.4815% Zhuji Best
Choice Magnet & Electron Co., Ltd. 58.5185% Italy CIBAS
S.R.S CIBAS S.R.S 40% |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Hangzhou HC
Electron Co., Ltd. |
1.4815 |
|
Zhuji Best
Choice Magnet & Electron Co., Ltd. |
58.5185 |
|
Italy CIBAS
S.R.S CIBAS S.R.S |
40 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal
Representative and Chairman |
Zhao Changmiao |
|
Vice
Chairman |
Ke Yapa |
|
Vice Chairman
and General Manager |
Li Heliang |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Hangzhou HC Electron Co., Ltd. 1.4815
Zhuji Best Choice Magnet & Electron Co.,
Ltd. 58.5185
Italy CIBAS S.R.S CIBAS S.R.S 40
Hangzhou
HC Electron Co., Ltd.
---------------------------------------
Registration No.: 330108000089032
Date of Registration: May 19, 1998
Legal Form: Limited Liabilities Company
Registered Capital: CNY 5,000,000
Legal Representative: Zhao Changmiao
Zhuji
Best Choice Magnet & Electron Co., Ltd.
----------------------------------------------------------
Registration No.: 330681000060046
Date of Registration: October 22, 2001
Legal Form: Limited Liabilities Company
Registered Capital: CNY 3,600,000
Legal Representative: Zhao Changmiao
MANAGEMENT
Zhao Changmiao, Legal
Representative and Chairman
----------------------------------------------------------------------------------
Ø
Gender: M
Ø Qualification:
University
Ø Working experience
(s):
At
present, working in SC as legal representative and chairman
Also working in Hangzhou HC Electron Co.,
Ltd. and Zhuji Best Choice Magnet & Electron Co., Ltd. as legal
representative
Ke Yapa, Vice
Chairman
--------------------------------------------
Ø
Gender: M
Ø Qualification:
University
Ø Working experience
(s):
At
present, working in SC as vice chairman
Li Heliang, Vice Chairman
and General Manager
-----------------------------------------------------------------------------
Ø
Gender: M
Ø Qualification:
University
Ø Working experience
(s):
At
present, working in SC as vice chairman and general manager
BUSINESS
OPERATION
SC’s
registered business scope includes manufacturing and selling magnetic
materials, motors, speakers & accessories, and other magnetic application
product.
SC is mainly
engaged in manufacturing and selling magnetic materials, motors, speakers &
accessories, and other magnetic application product.
SC’s products
mainly include:
NdFeB magnet
Holding magnets
Speaker drivers
Moto parts
Magnetic coupling
Lifting magnet
Magnetic chuck
SC sources its
materials 100% from domestic market. SC sells 30% of its products in domestic
market, and 70% to overseas market, mainly U.S.A., Southeast Asia, etc.
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.
*Major Customers*
---------------------
Active Field
Resources Inc.
Echo Medical
Systems
Gracida Magnetics
Inc.
Staff & Office:
--------------------------
SC is known
to have approx. 262 staff at
present.
SC owns an area as
its operating office and factory, but the detailed information is unknown.
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
The bank information
of SC is not filed in local SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2014 |
|
2,060 |
|
|
Notes receivable |
0 |
|
Accounts receivable |
12,210 |
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Advances to suppliers |
0 |
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Other receivable |
17,320 |
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Inventory |
15,190 |
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Non-current assets within one year |
0 |
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Other current assets |
5,100 |
|
|
------------------ |
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Current assets |
51,880 |
|
Fixed assets |
23,700 |
|
Construction in progress |
0 |
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Intangible assets |
0 |
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Long-term investment |
0 |
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Deferred income tax assets |
0 |
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Other non-current assets |
10,750 |
|
|
------------------ |
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Total assets |
86,330 |
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|
============= |
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Short-term loans |
20,420 |
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Notes payable |
0 |
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Accounts payable |
5,020 |
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Welfares payable |
0 |
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Taxes payable |
-1,120 |
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Advances from clients |
0 |
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Other payable |
19,060 |
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Other current liabilities |
0 |
|
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------------------ |
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Current liabilities |
43,380 |
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Non-current liabilities |
0 |
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------------------ |
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Total liabilities |
43,380 |
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Equities |
42,950 |
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------------------ |
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Total liabilities & equities |
86,330 |
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|
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2014 |
|
Revenue |
107,220 |
|
Cost of sales |
89,800 |
|
Sales expense |
960 |
|
Management expense |
11,450 |
|
Finance expense |
210 |
|
Profit before tax |
4,330 |
|
Less: profit tax |
690 |
|
3,640 |
Important Ratios
=============
|
|
As of Dec. 31, 2014 |
|
*Current ratio |
1.20 |
|
*Quick ratio |
0.85 |
|
*Liabilities to assets |
0.50 |
|
*Net profit margin (%) |
3.39 |
|
*Return on total assets (%) |
4.22 |
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*Inventory / Revenue ×365 |
52 days |
|
*Accounts receivable / Revenue ×365 |
42 days |
|
*Revenue / Total assets |
1.24 |
|
*Cost of sales / Revenue |
0.84 |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
l The revenue of SC
appears average in its line.
l SC’s net profit
margin is average.
l SC’s return on
total assets is average.
l
SC’s cost of sales is average, comparing with its
revenue.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears average.
l
The short-term loans of SC appear large.
l
SC’s revenue is in an average level, comparing with
the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered small-sized in its line with fairly stable financial
conditions. The large amount of short-term loans may be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.83 |
|
|
1 |
Rs.97.10 |
|
Euro |
1 |
Rs.69.74 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
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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 |
|
|
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 |
-- |
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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.