MIRA INFORM REPORT
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Report No. : |
327006 |
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Report Date : |
16.06.2015 |
IDENTIFICATION DETAILS
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Name : |
QINGDAO TIANYI GROUP RED FLAG TEXTILE MACHINERY CO., LTD. |
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Registered Office : |
No. 888 Lingang First Road, Lin’gang Economic Development
Zone, Qingdao, Shandong Province 266400 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
11.11.2004 |
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Com. Reg. No.: |
370284228035830 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Subject is engaged manufacturing and selling machinery, textile
machinery and accessories; developing and selling electronic control system; weaving
(excluding printing) and selling cotton, wool and chemical fiber cloth,
importing and exporting goods |
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No. of Employee : |
200 |
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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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China |
A1 |
A1 |
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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 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. In 2014 China agreed to begin limiting carbon dioxide emissions by 2030. China implemented several economic reforms in 2014, including legislation allowing local governments to issue bonds, further opening several state-owned enterprises to private investment, loosening the one-child policy, passing harsher pollution fines, and cutting administrative red tape.
|
Source
: CIA |
Company
name and address
QINGDAO TIANYI GROUP
RED FLAG TEXTILE MACHINERY CO., LTD.
NO. 888 LINGANG FIRST ROAD, LIN’GANG ECONOMIC DEVELOPMENT ZONE
QINGDAO, SHANDONG PROVINCE 266400 PR CHINA
TEL: 86 (0) 532-83192977/83192561
FAX: 86 (0) 532-83192561
EXECUTIVE
SUMMARY
Date of Registration : NOVember 11, 2004
REGISTRATION NO. : 370284228035830
LEGAL FORM : Limited Liability Company
REGISTERED CAPITAL :
CNY 10,000,000
staff : 200
BUSINESS CATEGORY :
MANUFACTURING & TRADING
REVENUE :
CNY 80,351,000 (FROM JAN. 1, 2014 TO JUN. 30, 2014)
EQUITIES :
CNY 10,682,000 (AS OF JUN. 30, 2014)
WEBSITE : www.chinaredflag.com
E-MAIL :
qlm@chinaredflag.com
Recommended Credit Limit: UP TO USD 80,000
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 limited liabilities company of PRC with State Administration
of Industry & Commerce (SAIC) under registration No.: 370284228035830 on November
11, 2004.
SC’s Organization Code Certificate
No.: 76673217-6
SC’s Tax No.: 370284766732176
SC’s registered capital: CNY 10,000,000
SC’s paid-in capital: CNY 10,000,000
Registration Change Record:-
No significant changes of SC have been
noted in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Qingdao Tianyi Group
Yingzhushan Real Estate Development Co., Ltd. |
84.5 |
|
Qingdao Tianyi Group Co., Ltd. |
1.5 |
|
Zhou Xingchang |
10 |
|
Bi Wenzhi |
2 |
|
Sun Zongming |
1 |
|
Yu Jia |
1 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and
Chairman |
Wang Xibo |
|
General Manager |
Sun Zongming |
|
Director |
Zhou Xingchang |
|
Pang Shuxue |
|
|
An Fengbo |
|
|
Sun Guohua |
|
|
Sun Zongming |
|
|
Yang Caitang |
|
|
Yu Jia |
|
|
Supervisor |
Wang
Haibo |
|
Wang
Hua |
|
|
Zhang Chongjun |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Qingdao Tianyi Group Yingzhushan
Real Estate
Development Co., Ltd. 84.5
Qingdao Tianyi Group Co., Ltd. 1.5
Zhou Xingchang 10
Bi Wenzhi 2
Sun Zongming 1
Yu Jia 1
Qingdao
Tianyi Group Yingzhushan Real Estate Development Co., Ltd.
--------------------------------------------------------------------------------------------
Date of Registration: Nov. 18, 2000
Registration No.: 370284228007456
Legal Form: Limited Liability
Company
Registered Capital: CNY 10,000,000
Qingdao
Tianyi Group Co., Ltd.
--------------------------------------------
Qingdao Tianyi Group Co., Ltd.
is a new type enterprise group, industries involved in motors, power
tools production, wood processing, real estate development, construction and
installation, decoration, textile machinery, electrical and electronics,
property management, etc.
Date of Registration: April 23, 2002
Registration No.: 370200228058651
Legal Form: Limited Liability
Company
Registered Capital: CNY 21,765,300
Tel: 0532-87195777
Fax: 0532-87195777
MANAGEMENT
Wang
Xibo, 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 Qingdao Tianyi Group Yingzhushan Real Estate Development
Co., Ltd. as legal representative
Sun
Zongming , General Manager
-------------------------------------------------------
Ø Gender: M
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as general
manager
Director
-----------
Zhou Xingchang
Pang Shuxue
An Fengbo
Sun Guohua
Sun Zongming
Yang Caitang
Yu Jia
Supervisor
--------------
Wang Haibo
Wang Hua
Zhang Chongjun
BUSINESS
OPERATION
SC’s registered
business scope includes general business items: manufacturing and selling
machinery, textile machinery and accessories; developing and selling electronic
control system; weaving (excluding printing) and selling cotton, wool and
chemical fiber cloth, importing and exporting goods. (with permit if needed).
SC is mainly
engaged in manufacturing and selling textile machinery and accessories.
Brand: HQF
SC’s
products mainly include: JA
SC sources its materials 100% from domestic market. SC sells 10% of its products to overseas market, and 90% in domestic market.
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.
Staff & Office:
--------------------------
SC is
known to have approx. 200
staff at present.
SC owns an area as
its operating office and factory, but the detailed information is unknown.
RELATED
COMPANY
n
Qingdao Tianyi Group Marine Equipment Co., Ltd.
-----------------------------------------
Date of Registration: December 16, 2005
Registration No.: 370284228042185
Registered Capital: CNY 1,000,000
n
Qingdao Tianyi Group Red Flag Motor Co., Ltd.
------------------------------------------
Date of Registration: October 17, 2002
Registration No.: 370284228027848
Registered Capital: CNY 15,110,000
Web: www.qdtianyi.com
E-mail: bgs@qdtianyi.com
Tel: 86 (0) 532-88139715
Fax: 86 (0) 532-88139716
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:
Qingdao Rural
Commercial Bank
AC#: N/a
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
24,099 |
18,913 |
|
|
Notes receivable |
7,799 |
152 |
|
Accounts
receivable |
18,081 |
56,261 |
|
Advances to
suppliers |
0 |
0 |
|
Other receivable |
26,376 |
1,384 |
|
Inventory |
30,750 |
31,668 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
107,105 |
108,378 |
|
Fixed assets |
12,687 |
23,022 |
|
Construction in progress |
2,125 |
3,197 |
|
Intangible
assets |
1,958 |
1,889 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Total assets |
123,875 |
136,486 |
|
|
============= |
============= |
|
Short-term loans |
33,600 |
23,900 |
|
Notes payable |
51,220 |
35,000 |
|
Accounts payable |
14,532 |
34,566 |
|
Wages payable |
0 |
0 |
|
Taxes payable |
506 |
760 |
|
Advances from
clients |
15,825 |
16,468 |
|
Other payable |
2,295 |
15,668 |
|
Other current
liabilities |
335 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
118,313 |
126,362 |
|
Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total liabilities |
118,313 |
126,362 |
|
Equities |
5,562 |
10,124 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
123,875 |
136,486 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
|
Revenue |
217,881 |
|
Cost of sales |
187,581 |
|
Taxes and surcharges |
503 |
|
Sales expense |
8,504 |
|
Management expense |
15,236 |
|
Finance expense |
1,999 |
|
Profit before
tax |
5,185 |
|
Less: profit tax |
772 |
|
4,413 |
Financial Summary
|
Unit: CNY’000 |
As
of Dec. 31, 2013 |
As
of Jun. 30, 2014 |
|
Total assets |
129,580 |
149,225 |
|
|
------------- |
------------- |
|
Total
liabilities |
119,570 |
138,543 |
|
Equities |
10,010 |
10,682 |
|
|
------------- |
------------- |
|
Unit: CNY’000 |
As
of Dec. 31, 2013 |
From Jan. 1, 2014 to Jun. 30, 2014 |
|
Revenue |
159,720 |
80,351 |
|
Cost of sales |
130,550 |
-- |
|
Profit before
tax |
2,030 |
-- |
|
Less: profit tax |
300 |
-- |
|
Profits |
1,730 |
672 |
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
As
of Jun. 30, 2014 |
|
*Current ratio |
0.91 |
0.86 |
-- |
-- |
|
*Quick ratio |
0.65 |
0.61 |
-- |
-- |
|
*Liabilities
to assets |
0.96 |
0.93 |
0.92 |
0.93 |
|
*Net profit
margin (%) |
-- |
2.03 |
1.08 |
0.84 |
|
*Return on
total assets (%) |
-- |
3.23 |
1.34 |
0.45 |
|
*Inventory /
Revenue ×365 |
-- |
54 days |
-- |
-- |
|
*Accounts
receivable/ Revenue ×365 |
-- |
95 days |
-- |
-- |
|
*Revenue/Total
assets |
-- |
1.60 |
1.23 |
0.54 |
|
*Cost of sales
/ Revenue |
-- |
0.86 |
0.82 |
-- |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
l The revenue of SC appears fairly good 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:
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 appears large.
l
SC’s short-term loans are in an average level.
l
SC’s revenue is in an
average level, comparing with the size of its total assets.
LEVERAGE:
FAIR
l
The debt ratio of SC is fairly high.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with
fairly stable financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.09 |
|
|
1 |
Rs.99.57 |
|
Euro |
1 |
Rs.71.84 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
ASH |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>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.