MIRA INFORM REPORT
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Report No. : |
319366 |
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Report Date : |
02.05.2015 |
IDENTIFICATION DETAILS
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Name : |
REIGNMAC MACHINERY
CO., LTD. |
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Registered Office : |
No. 17 Fuan Avenue, Fuan Industrial Zone, Leliu, Shunde District, Foshan City, Guangdong Province, 528322 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
15.09.2003 |
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Com. Reg. No.: |
440681400006185 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Manufacture and operation of woodworking machinery, forging equipment
and spare parts, CNC machine tools of over three axes linkage, CNC system and
servo device (excluding those without permit). |
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No. of Employees : |
160 |
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
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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 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.
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Source
: CIA |
Company
Name & address
REIGNMAC MACHINERY CO., LTD.
No. 17 fuan avenue, fuan
industrial zone, leliu, shunde district, foshan city, guangdong PROVINCE,
528322 PR CHINA
TEL: 86 (0) 757-23663333/23663336 FAX: 86 (0) 757-23663335
EXECUTIVE
SUMMARY
INCORPORATION DATE : sep. 15, 2003
REGISTRATION NO. : 440681400006185
REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED ENTERPRISE
CHIEF EXECUTIVE :
Mr. Zhou huabiao (legal representative)
STAFF STRENGTH :
160
REGISTERED CAPITAL : hkd 22,000,000
BUSINESS LINE :
TRADING and manufacturing
TURNOVER :
CNY 59,240,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY 20,650,000 (AS OF DEC. 31, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.2018 = USD 1
Adopted
abbreviations:
ANS - amount not stated NS
- not stated SC - subject company (the
company inquired by you)
NA - not available CNY
- China Yuan Renminbi
Note: The given mobile number could not be connected.
SC was registered as a wholly foreign-owned enterprise at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Sep.
15, 2003.
Company Status: Wholly foreign-owned enterprise This form of business in PR China is defined as a legal
person. It is a limited co. established within the territories of PR China
with capital provided totally by the foreign investors. More than one
foreign investor may jointly invest in a wholly foreign-owned enterprise.
The investing party/parties solely exercise management, reap profit and
bear risks and liabilities by themselves. This form of companies usually
have a limited duration is extendible upon approval of Examination and
Approval Authorities.
SC’s registered business scope includes manufacture and operation of
woodworking machinery, forging equipment and spare parts, CNC machine tools of over
three axes linkage, CNC system and servo device (excluding those without
permit).
SC is mainly engaged in manufacturing and sales of machinery equipment.
Mr. Zhou Huabiao is legal representative and chairman of SC at present.
SC is known to have approx. 160 employees
at present.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in the industrial zone of Foshang.
Detailed premise information is not available at present.
http://www.reignmac.com/
The design is professional and the content is well organized. At present it is
in English and Chinese versions.
Email: reignmac@reignmac.com
For the past two years there is no record of litigation.
According to SC’s website, SC’s former name
was Reignmac Machinery Co., Ltd., Shunde Foshan
Organization Code: 753689156
MAIN SHAREHOLDERS:
Name %
of Shareholding
Power Steel Technological Research Limited (The British Virgin Islands) 100
Legal
Representative and Chairman:
Mr. Zhou Huabia is currently responsible for the overall management of
SC.
Working Experience(s):
At present Working
in SC as legal representative and chairman.
Also working in Reignmac Machinery Co., Ltd. Lunjiao Branch as
principal.
Director:
Chen Huansheng
Zhou Wenbo
SC is mainly engaged in manufacturing and sales of machinery equipment.
SC’s products mainly include: Four-Side Moulder, Double End Tenoner,
Multi-Rip Saw and Double-side Planner.
SC sources its materials 100% from domestic market. SC sells 50% of its
products in domestic market, and 50% to overseas 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.
Note: SC declined to release its major suppliers and clients.
TRADEMARKS & PATENTS
Registration No.: 13670545
Registration Date:
Trademark Design:
Registration No.: 13670509
Registration Date:
Trademark Design:
Registration No.: 3691782
Registration Date:
Trademark Design:
Reignmac Machinery Co., Ltd. Lunjiao Branch
==================================
Incorporation date:
Registration no.: 440681500012363
Principal: Zhou Huabiao
Overall payment appraisal: ( )
Excellent ( ) Good
(X) Average ( ) Fair
( ) Poor (
) Not yet 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.
Shunde Rural Commercial Bank Shunde Sub-branch
AC#: N/A
Relationship: Normal
Balance
Sheet
Unit: CNY’000
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As of Dec. 31,
2014 |
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Cash & bank |
4,820 |
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Inventory |
34,380 |
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Accounts receivable |
1,520 |
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Advances to suppliers |
300 |
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Prepaid expenses |
340 |
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Other receivables |
9,670 |
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------------------ |
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Current assets |
51,030 |
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Fixed assets net value |
18,590 |
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Intangible and other assets |
6,600 |
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Total assets |
76,220 |
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=========== |
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Short loan |
34,000 |
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Accounts payable |
11,340 |
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Advances from customers |
3,600 |
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Taxes payable |
60 |
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Other accounts payable |
-4,880 |
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Note payable |
10,000 |
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Payroll payable |
1,450 |
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Current liabilities |
55,570 |
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Long term liabilities |
0 |
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------------------ |
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Total liabilities |
55,570 |
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Equities |
20,650 |
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------------------ |
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Total liabilities & equities |
76,220 |
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Income
Statement
Unit: CNY’000
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As of Dec. 31,
2014 |
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Turnover |
59,240 |
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Cost of goods sold |
43,860 |
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Taxes and additional of
main operation |
650 |
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Sales expense |
2,820 |
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Management expense |
9,290 |
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Finance expense |
2,420 |
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Non-operating income |
90 |
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Profit before tax |
290 |
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Less: profit tax |
10 |
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Profits |
280 |
Important
Ratios
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As of Dec.
31, 2014 |
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*Current ratio |
0.92 |
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*Quick ratio |
0.30 |
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*Liabilities to assets |
0.73 |
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*Net profit margin (%) |
0.47 |
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*Return on total assets (%) |
0.37 |
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*Inventory /Turnover ×365 |
212 days |
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*Accounts receivable/Turnover ×365 |
10 days |
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*Turnover/Total assets |
0.78 |
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* Cost of goods sold/Turnover |
0.74 |
PROFITABILITY:
AVERAGE
The turnover of SC appears average in its line.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of goods sold is average.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a fair level.
SC’s quick ratio is maintained in a poor level.
The inventory of SC appears large.
The accounts receivable of SC is maintained in an average level.
SC’s short loans are large in 2014.
SC’s turnover is in a fair 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 average.
Overall financial
condition of the SC: Fairly stable.
SC is considered medium-sized in its line with fairly stable financial
conditions. The large amount of inventory and short loans could be a threat to
SC’s financial situation.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.63.57 |
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1 |
Rs.97.99 |
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Euro |
1 |
Rs.70.53 |
INFORMATION DETAILS
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Analysis Done by
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SUB |
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Report Prepared
by : |
TPT |
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 |
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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 |
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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.