MIRA INFORM REPORT
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Report No. : |
321193 |
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Report Date : |
08.05.2015 |
IDENTIFICATION DETAILS
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Name : |
PTM ENGINEERING PLASTICS (NANTONG) CO., LTD. |
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Registered Office : |
No. 171 Minxing Road, Economic Technology Development Zone, Nanton City, Jiangsu Province, 226009 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
24.12.2001 |
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Com. Reg. No.: |
320600400005078 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Manufacturing and Sales of Plastic Products. |
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No. of Employees : |
172 |
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.
|
Source
: CIA |
Company
Name and address
PTM ENGINEERING PLASTICS (NANTONG) CO., LTD.
No.
171 minxing road, economic technology development zone, nanton city, JIANGSU
PROVINCE, 226009 PR CHINA
TEL: 86 (0)
513-85922000*1201 FAX: 86 (0)
513-85922333
EXECUTIVE
SUMMARY
INCORPORATION DATE : dec. 24, 2001
REGISTRATION NO. : 320600400005078
REGISTERED LEGAL FORM : Wholly
foreign-owned enterprise
STAFF STRENGTH : 172
REGISTERED CAPITAL : usd
46,700,000
BUSINESS LINE :
TRADING and manufacturing
TURNOVER : CNY 573,730,000
(AS OF DEC. 31, 2014)
EQUITIES : CNY 493,200,000 (AS OF DEC. 31, 2014)
PAYMENT : AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND :
steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.2013= 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
%20CO.,%20LTD.%20-%20321193%2008-May-2015_files/image017.gif){kind=small}
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 Dec. 24,
2001.
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, processing, distribution
and sales of POM and other thermoplastic engineering plastics, and after sale
service (excluding pre permitted goods) (if needed with permit).
SC is mainly engaged in manufacturing and sales of plastic products.
Mr. Atsushi
Akimoto is legal representative and chairman of SC at present.
SC is known to
have approx. 172 employees at
present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the economic technology development zone of
Nantong. Detailed premise information is not available at present.
%20CO.,%20LTD.%20-%20321193%2008-May-2015_files/image002.gif){kind=small}
http://www.polyplastics.com/
(belongs to Polyplastics Co., Ltd.) The design is professional and the content
is well organized. At present it is in Chinese, English and Japanese versions.
Email: chao.jiang@polyplastics.com
%20CO.,%20LTD.%20-%20321193%2008-May-2015_files/image003.gif){kind=small}
For the past two years there is no record of litigation.
%20CO.,%20LTD.%20-%20321193%2008-May-2015_files/image004.gif){kind=small}
No significant changes were found during our
checks with the local Administration for Industry and Commerce.
Organization Code:
732252430
%20CO.,%20LTD.%20-%20321193%2008-May-2015_files/image005.gif){kind=small}
MAIN
SHAREHOLDERS:
Name %
of Shareholding
PTM Holdings, Inc. (Japan) 100
%20CO.,%20LTD.%20-%20321193%2008-May-2015_files/image006.gif){kind=small}
l Legal
Representative, Chairman:
Mr. Atsushi Akimoto (Japanese) is currently
responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as legal representative,
chairman.
Also working in Polyplastics (Nantong)
Ltd. as legal representative, etc.
l General Manager:
Keiji Arakawa (Japanese) is currently responsible for the
daily management of SC.
Working Experience(s):
At present Working in SC as general
manager.
l Director:
Hideaki Nakano
Yasumitsu Miyamoto
Gaoye Shi (In Chinese Pinyin)
%20CO.,%20LTD.%20-%20321193%2008-May-2015_files/image007.gif){kind=small}
SC is mainly engaged in manufacturing and sales of plastic products.
SC’s products
mainly include: Polyoxymethylene.
SC sources its materials 50% from domestic
market, and 50% from overseas market. SC sells 60% of its products in domestic
market, and 40% to overseas market.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
Note: SC declined to release its major
suppliers and clients.
%20CO.,%20LTD.%20-%20321193%2008-May-2015_files/image008.gif){kind=small}
According to the website:
Polyplastics
Trading (Shanghai) Ltd.
===========================
Incorporation
Date: 2001-5-16
Registration
No.: 310115400078655
Registered
Legal Form: Wholly Foreign-Owned Enterprise
Polyplastics
(Nantong) Ltd.
====================
Incorporation
Date: 2012-01-19
Registration
No.: 320600400034783
Registered
Legal Form: Wholly Foreign-Owned Enterprise
Legal
representative: Atsushi Akimoto
Etc.
%20CO.,%20LTD.%20-%20321193%2008-May-2015_files/image009.gif){kind=small}
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.
%20CO.,%20LTD.%20-%20321193%2008-May-2015_files/image010.gif){kind=small}
SC’s accountant
refused to release the bank details.
%20CO.,%20LTD.%20-%20321193%2008-May-2015_files/image011.gif){kind=small}
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2014 |
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Cash & bank |
147,140 |
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Inventory |
97,870 |
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Accounts
receivable |
62,300 |
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Advances to
suppliers |
720 |
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Prepaid expenses |
70 |
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Other
receivables |
1,830 |
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|
------------------ |
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Current assets |
309,930 |
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Fixed assets net
value |
228,030 |
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Long term prepaid
expenses |
60 |
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Projects under
construction |
530 |
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Intangible and
other assets |
12,920 |
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|
------------------ |
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Total assets |
551,470 |
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|
=========== |
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Short loan |
20,000 |
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Accounts payable |
19,650 |
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Accrued expenses |
6500 |
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Taxes payable |
7,710 |
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Other accounts
payable |
3,460 |
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Payroll payable |
950 |
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------------------ |
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Current
liabilities |
58,270 |
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Long term
liabilities |
0 |
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|
------------------ |
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Total
liabilities |
58,270 |
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Equities |
493,200 |
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|
------------------ |
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Total
liabilities & equities |
551,470 |
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=========== |
Income Statement
Unit: CNY’000
|
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As of Dec. 31,
2014 |
|
Turnover |
573,730 |
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Cost of goods
sold |
444,610 |
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Taxes and additional of main operation |
5,840 |
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Sales expense |
2,080 |
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Management expense |
48,900 |
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Finance expense |
2,370 |
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Other business
profits |
430 |
|
Subsidy income |
8,540 |
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Non-operating
income |
30 |
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Non-operating expense |
610 |
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Profit before
tax |
78,320 |
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Less: profit tax |
19,500 |
|
Profits |
58,820 |
Important
Ratios
=============
|
|
As
of Dec. 31, 2014 |
|
*Current ratio
|
5.32 |
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*Quick ratio |
3.64 |
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*Liabilities
to assets |
0.11 |
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*Net profit
margin (%) |
10.25 |
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*Return on total
assets (%) |
10.67 |
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*Inventory
/Turnover ×365 |
63 days |
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*Accounts
receivable/Turnover ×365 |
40 days |
|
*Turnover/Total
assets |
1.04 |
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* Cost of
goods sold/Turnover |
0.77 |
%20CO.,%20LTD.%20-%20321193%2008-May-2015_files/image012.gif){kind=small}
PROFITABILITY: FAIRLY
GOOD
l The turnover of SC appears fairly good in its line.
l SC’s net profit
margin is good.
l SC’s return on
total assets is good
l
SC’s cost of goods sold is average.
LIQUIDITY: FAIRLY
GOOD
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 average.
l
The accounts receivable of SC is maintained in an
average level.
l
SC’s short loans are average in 2014.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly good.
%20CO.,%20LTD.%20-%20321193%2008-May-2015_files/image013.gif){kind=small}
SC is considered medium-sized in its line with fairly good financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.88 |
|
|
1 |
Rs.97.21 |
|
Euro |
1 |
Rs.72.51 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
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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 |
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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.