MIRA INFORM REPORT
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Report No. : |
326443 |
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Report Date : |
10.06.2015 |
IDENTIFICATION DETAILS
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Name : |
SHANDONG DONGDING COMPOSITE MATERIAL CO., LTD. |
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Registered Office : |
Luxi New Century Industrial Park, Guan County, Liaocheng Shandong Province 252500 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
29.09.2003 |
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Com. Reg. No.: |
371500228019692 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Subject is engaged in manufacturing and selling cold-rolled strip, galvanized plate, color-coated coil. |
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No of Employees : |
420 |
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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
China |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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 & address
SHANDONG DONGDING
COMPOSITE MATERIAL CO., LTD.
LUXI NEW CENTURY
INDUSTRIAL PARK, GUAN COUNTY, LIAOCHENG
SHANDONG PROVINCE
252500 PR CHINA
TEL: 86 (0)
635-2911578
FAX: 86 (0)
635-5105766
EXECUTIVE
SUMMARY
Date of Registration : september 29, 2003
REGISTRATION NO. : 371500228019692
LEGAL FORM : Limited Liability Company
REGISTERED CAPITAL : CNY 160,000,000
staff :
420
BUSINESS CATEGORY : MANUFACTURING
& TRADING
Revenue :
CNY 463,338,000 (AS OF DEC. 31,
2014)
EQUITIES :
CNY -37,104,000 (AS OF DEC. 31, 2014)
WEBSITE : www.sddongding.com
E-MAIL :
sdddzg@163.com
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : poor
OPERATIONAL TREND : FAIR
GENERAL REPUTATION : FAIR
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 limited liabilities company of PRC with State Administration of Industry
& Commerce (SAIC) under registration No.: 371500228019692
on September 29, 2003.
SC’s Organization Code Certificate No.:
75449854-6
SC’s Tax No.: 372526754498546
SC’s registered capital: CNY 160,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2015-2-4 |
Registered Capital |
CNY 100,000,000 |
CNY 160,000,000 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Li Dongming |
87.5 |
|
Zhang Liqin |
11.25 |
|
Gao Ruchen |
1.25 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Li Dongming |
|
General Manager |
Lv Baoju |
|
Supervisor |
Hou Shubo |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name % of
Shareholding
Li Dongming 87.5
Zhang Liqin 11.25
Gao Ruchen 1.25
MANAGEMENT
Li Dongming, Legal Representative and Chairman
-----------------------------------------------------------------------------
Ø
Gender: M
Ø Qualification:
University
Ø Working experience
(s):
From 2003 to present, working in SC as legal
representative and chairman
Lv
Baoju, General Manager
------------------------------------------------
Ø
Gender: M
Ø Qualification:
University
Ø Working experience
(s):
From 2003 to present, working in SC as general
manager
Supervisor
--------------
Hou Shubo
BUSINESS
OPERATION
SC’s registered business scope includes manufacturing and
selling cold-rolled strip, galvanized plate, color-coated coil; operating and acting
as an agent of importing and exporting various kinds of commodities and
technology, excluding the goods forbidden by the government.
SC is mainly
engaged in manufacturing and selling cold-rolled strip, galvanized plate,
color-coated coil.
Brand: DONGDING
SC’s products
mainly include: cold-rolled strip, galvanized plate, color-coated coil.
SC sources its materials 100% from domestic market, mainly Shandong. SC sells 60% of its products in domestic market, and 40% to overseas market, mainly Burma, India, South Korea, Ukraine, South Africa, Italy, etc.
The buying terms
of SC include Check, T/T and Credit of 30-60 days. The payment terms of SC
include T/T, L/C and Credit of 30-60 days.
*Major Customer*
----------------------
Rodriguez De Lira
Y Asociados Sa De Cv
Staff & Office:
--------------------------
SC is known
to have approx. 420 staff at present.
SC rents an area
as its operating office & factory of approx. 66,500 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
The bank
information of SC is not filed in SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2013 |
As
of Dec. 31, 2014 |
|
196,214 |
265,224 |
|
|
Notes receivable |
1,100 |
400 |
|
Accounts
receivable |
0 |
38,007 |
|
Advances to
suppliers |
81,811 |
73,029 |
|
Other receivable |
76,659 |
47,559 |
|
Inventory |
24,986 |
59,551 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
380,770 |
483,770 |
|
Fixed assets |
78,017 |
72,047 |
|
Construction in
progress |
82,318 |
113,467 |
|
Intangible
assets |
3,096 |
3,096 |
|
Long-term
prepaid expenses |
0 |
2,233 |
|
Deferred income
tax assets |
0 |
0 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Total assets |
544,201 |
674,613 |
|
|
============= |
============= |
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Short-term loans |
305,289 |
375,700 |
|
Notes payable |
0 |
0 |
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Accounts payable |
0 |
0 |
|
Wages payable |
29 |
3 |
|
Taxes payable |
-85 |
-250 |
|
Advances from
clients |
16,631 |
8,711 |
|
Other payable |
250,637 |
310,591 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
572,501 |
694,755 |
|
Non-current
liabilities |
0 |
16,962 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
572,501 |
711,717 |
|
Equities |
-28,300 |
-37,104 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
544,201 |
674,613 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2014 |
|
Revenue |
463,338 |
|
Cost of sales |
481,161 |
|
Taxes and surcharges |
371 |
|
Sales expense |
1,395 |
|
Management expense |
5,265 |
|
Finance expense |
45,075 |
|
Profit before
tax |
-8,786 |
|
Less: profit tax |
18 |
|
-8,804 |
Important Ratios
=============
|
|
As
of Dec. 31, 2013 |
As
of Dec. 31, 2014 |
|
*Current ratio |
0.67 |
0.70 |
|
*Quick ratio |
0.62 |
0.61 |
|
*Liabilities
to assets |
1.05 |
1.06 |
|
*Net profit
margin (%) |
-- |
-1.90 |
|
*Return on
total assets (%) |
-- |
-1.31 |
|
*Inventory /
Revenue ×365 |
-- |
47 days |
|
*Accounts
receivable/ Revenue ×365 |
-- |
30 days |
|
*Revenue/Total
assets |
-- |
0.69 |
|
*Cost of sales
/ Revenue |
-- |
1.04 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIR
l The revenue 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.
l
SC’s cost of sales is high, comparing with its
revenue.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC is maintained in an
average level.
l
The short-term loans of SC appear large.
l
SC’s revenue is in a fair level, comparing with the
size of its total assets.
LEVERAGE: POOR
l
The debt ratio of SC is high.
l
The risk for SC to go bankrupt is fairly high.
Overall financial
condition of the SC: Poor.
CONCLUSIONS
SC is considered medium-sized in its line with poor financial
conditions. The large amount of short-term loans may be a threat to SC’s
financial condition. Great caution is required in providing credit to SC and
C.O.D. is recommended.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 63.93 |
|
|
1 |
Rs. 98.26 |
|
Euro |
1 |
Rs. 72.36 |
INFORMATION DETAILS
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Analysis Done by
: |
KRN |
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Report Prepared
by : |
DPT |
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 |
|
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.