MIRA INFORM REPORT
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Report No. : |
328703 |
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Report Date : |
26.06.2015 |
IDENTIFICATION DETAILS
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Name : |
TENGXUAN TECHNOLOGY CO., LTD. |
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Registered Office : |
No. 6 Xindu Road, Meicun Industrial Zone, New Zone, Wuxi, Jiangsu
Province 214112 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
28.04.2004 |
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Com. Reg. No.: |
320213000051294 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject is engaged in researching, developing, manufacturing,
processing and selling rotary joint of hot and cold exchange equipment;
researching, developing and selling mechanical seal, metal hose, and
precision machinery; technology service for paper machine; selling graphite
products and chemical products; importing and exporting commodities and
technology |
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No. of Employee : |
183 |
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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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China |
A1 |
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
TENGXUAN TECHNOLOGY
CO., LTD.
NO. 6 XINDU ROAD, MEICUN INDUSTRIAL ZONE
NEW ZONE, WUXI, JIANGSU PROVINCE 214112 PR CHINA
TEL: 86 (0) 510-88159440/68787000
FAX: 86 (0) 510-88159405
EXECUTIVE
SUMMARY
Date of Registration : april 28, 2004
REGISTRATION NO. : 320213000051294
LEGAL FORM : shares limited company
REGISTERED CAPITAL :
CNY 32,576,800
staff : 183
BUSINESS CATEGORY :
manufacturing & processing & TRADING
Revenue : CNY 35,014,000 (AS OF DEC. 31, 2014)
EQUITIES : CNY 58,363,000 (AS OF DEC. 31, 2014)
WEBSITE : www.tengxuan.net
E-MAIL :
n/a
PAYMENT : AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.20 = USD
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 shares limited company of
PRC with State Administration of Industry & Commerce (SAIC) under
registration No.: 320213000051294 on April
28, 2004.
SC’s Organization Code Certificate
No.: 76103217-0
SC’s Tax No.: 320200761032170
SC’s registered capital: CNY 32,576,800
SC’s paid-in capital: CNY 32,576,800
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 |
|
Wuxi Guolian Houze Venture
Capital Enterprise (Limited Partnership) |
18.41 |
|
Suzhou Jinmao Xinxing Industry
Venture Capital Enterprise (Limited Partnership) |
12.27 |
|
Li Jisuo |
46.61 |
|
Chen Quping |
6.11 |
|
Dong Qiuping |
5.36 |
|
Chen Qiang |
5.23 |
|
Chen Yichang |
1.08 |
|
Guo Haiwen |
0.82 |
|
Liu Yu |
0.82 |
|
Bao Yulong |
0.82 |
|
Jiang Kefeng |
0.82 |
|
Yan Mingxiong |
0.82 |
|
Wang Zhen |
0.37 |
|
Pan Ning |
0.28 |
|
Yan Zhi |
0.09 |
|
Yu Jinxiu |
0.09 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman
and General Manager |
Li Jisuo |
|
Vice Chairman |
Chen
Quping |
|
Director |
Xu
Yongliang |
|
Chen
Yichang |
|
|
Jiang
Kefeng |
|
|
Bao
Yulong |
|
|
Supervisor |
Jin
Xiaoban |
|
Liu
Yu |
|
|
Dong
Qiuping |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Wuxi Guolian Houze Venture Capital
Enterprise (Limited Partnership) 18.41
Suzhou Jinmao Xinxing Industry Venture
Capital Enterprise
(Limited Partnership) 12.27
Li Jisuo 46.61
Chen Quping 6.11
Dong Qiuping 5.36
Chen Qiang 5.23
Chen Yichang 1.08
Guo Haiwen 0.82
Liu Yu 0.82
Bao Yulong 0.82
Jiang Kefeng 0.82
Yan Mingxiong 0.82
Wang Zhen 0.37
Pan Ning 0.28
Yan Zhi 0.09
Yu Jinxiu 0.09
MANAGEMENT
Li
Jisuo , Legal
Representative, Chairman and General Manager
----------------------------------------------------------------------------------------------
Ø
Gender: M
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal
representative, chairman and general manager
Chen Quping, Vice
Chairman
--------------------------------------------------
Ø
Gender: F
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as vice chairman
Director
------------
Xu Yongliang
Chen Yichang
Jiang Kefeng
Bao Yulong
Supervisor
-------------
Jin Xiaoban
Liu Yu
Dong Qiuping
BUSINESS
OPERATION
SC’s
registered business scope includes ordinary freight; researching, developing, manufacturing,
processing and selling rotary joint of hot and cold exchange equipment;
researching, developing and selling mechanical seal, metal hose, and precision
machinery; technology service for paper machine; selling graphite products and
chemical products; importing and exporting commodities and technology.
SC is
mainly engaged in manufacturing, processing and selling rotary joint.
SC’s products mainly include:
rotary joint.
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., 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 Customers*
----------------------
Calpacific
Equipment Co Ltd
Inter
Pacific Paper
Staff & Office:
--------------------------
SC is
known to have approx. 183 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, 2013 |
As
of Dec. 31, 2014 |
|
6,987 |
5,226 |
|
|
Notes receivable |
5,883 |
4,073 |
|
Accounts
receivable |
21,459 |
21,845 |
|
Advances to
suppliers |
957 |
1,168 |
|
Other receivable |
2,195 |
2,330 |
|
Inventory |
19,415 |
22,706 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
2,969 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
59,865 |
57,348 |
|
Long-term
investment |
23,688 |
23,237 |
|
Fixed assets |
24 |
670 |
|
Construction in
progress |
|
|
|
Intangible
assets |
3,739 |
3,640 |
|
Long-term
prepaid expenses |
212 |
268 |
|
Deferred income
tax assets |
187 |
335 |
|
Other
non-current assets |
0 |
976 |
|
|
------------------ |
------------------ |
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Total assets |
87,715 |
86,474 |
|
|
============= |
============= |
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Short-term loans |
19,000 |
19,000 |
|
Notes payable |
0 |
0 |
|
Accounts payable |
5,596 |
6,122 |
|
Wages payable |
3 |
0 |
|
Dividends
payable |
0 |
0 |
|
Taxes payable |
1,054 |
908 |
|
Advances from
clients |
1,617 |
1,532 |
|
Other payable |
206 |
79 |
|
Non-current
liabilities due within one year |
1,428 |
469 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
28,904 |
28,110 |
|
Non-current
liabilities |
503 |
1 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
29,407 |
28,111 |
|
Equities |
58,308 |
58,363 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
87,715 |
86,474 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2013 |
As of Dec. 31,
2014 |
|
Revenue |
35,183 |
35,014 |
|
Cost of sales |
19,021 |
19,982 |
|
Taxes and surcharges |
303 |
322 |
|
Sales expense |
6,130 |
5,627 |
|
Management expense |
8,515 |
9,079 |
|
Finance expense |
1,000 |
1,401 |
|
Investment
income |
134 |
32 |
|
Non-business
income |
796 |
2,421 |
|
Non-business expenditure |
130 |
31 |
|
Profit before
tax |
779 |
38 |
|
Less: profit tax |
86 |
-17 |
|
693 |
55 |
Important Ratios
=============
|
|
As
of Dec. 31, 2013 |
As
of Dec. 31, 2014 |
|
*Current ratio |
2.07 |
2.04 |
|
*Quick ratio |
1.40 |
1.23 |
|
*Liabilities
to assets |
0.34 |
0.33 |
|
*Net profit
margin (%) |
1.97 |
0.16 |
|
*Return on
total assets (%) |
0.79 |
0.06 |
|
*Inventory /
Revenue ×365 |
202 days |
237 days |
|
*Accounts
receivable / Revenue ×365 |
223 days |
228 days |
|
*Revenue /
Total assets |
0.40 |
0.40 |
|
*Cost of sales
/ Revenue |
0.54 |
0.57 |
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 fairly
good level.
l
SC’s quick ratio is maintained in a fairly good
level.
l
The inventory of SC appears large.
l
The accounts receivable of SC appears large.
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:
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 medium-sized in its line with
fairly stable financial conditions. Taking into consideration of SC’s general
performance, reputation as well as market conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.61 |
|
|
1 |
Rs.99.79 |
|
Euro |
1 |
Rs.71.17 |
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.