MIRA INFORM REPORT
|
Report No. : |
322470 |
|
Report Date : |
16.05.2015 |
IDENTIFICATION DETAILS
|
Name : |
JUNMA TYRE CORD COMPANY LIMITED |
|
|
|
|
Registered Office : |
No. 80 Chenghanghe East Road, Yangshe Town, Zhangjiagang Jiangsu Province 215617 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
12.06.1998 |
|
|
|
|
Com. Reg. No.: |
320000400001617 |
|
|
|
|
Legal Form : |
Shares Limited Company |
|
|
|
|
Line of Business : |
Manufacturing and selling cord fabric, thread, wholesaling its
products and similar products. |
|
|
|
|
No. of Employees : |
1,900 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
Payment Behaviour : |
Slow but correct |
|
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 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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 & address
JUNMA TYRE CORD COMPANY LIMITED
NO. 80 CHENGHANGHE EAST ROAD, YANGSHE TOWN, ZHANGJIAGANG JIANGSU
PROVINCE 215617 PR CHINA
TEL: 86 (0) 512-58291688/58299116
FAX: 86 (0) 512-58292308/58140216
EXECUTIVE
SUMMARY
Date of Registration : june 12, 1998
REGISTRATION NO. : 320000400001617
LEGAL FORM : SHARES LIMITED
COMPANY
CHIEF EXECUTIVE :
yang peixing (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 73,400,000
staff :
1,900
BUSINESS CATEGORY : manufacturing & trading
REVENUE :
CNY 2,513,762,000 (CONSOLIDATED,
AS OF DEC. 31, 2013)
TOTAL EQUITIES :
CNY 90,597,000 (CONSOLIDATED, AS OF DEC. 31, 2013)
WEBSITE : www.junmachina.com
E-MAIL :
master@junmachina.com
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fair
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 shares limited company of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.: 320000400001617 on June 12, 1998.
SC’s Organization Code Certificate No.:
70368075-1
SC’s Tax No.: 320582703680751
SC’s registered capital: CNY 73,400,000
SC’s paid-in capital: CNY 73,400,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2008 |
Registration
No. |
000435 |
320000400001617 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Chen Zufu |
5.96 |
|
Jiang Jianping |
3.41 |
|
Liu Yaoxiang |
3.41 |
|
Liu Zhenfeng |
6.13 |
|
Yang Peixing |
14.98 |
|
Zhangjiagang Bole Investment & Development Co., Ltd. |
41.04 |
|
S Shares Issued In Singapore |
25.07 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and General Manager |
Yang Peixing |
|
Vice Chairman |
Liu Yaoxiang |
|
Director |
Liu Zhenfeng |
|
Jen Shek Voon |
|
|
Teng Cheong Kwee |
|
|
Zhou Zhidan |
|
|
Shan Wenfeng |
|
|
Supervisor |
Yang Renming |
|
Xu Feng |
RECENT DEVELOPMENT
In November 2004, SC was listed on the Singapore Stork Exchange and
become the firs S share which was quoted automatically by Chinese enterprise in
Singapore.
SC has got the certificate ISO 9000, ISO 9001, ISO/TS 16949
certificates, and was awarded as Scientific and Technological Progress Advanced
Enterprises, Jiangsu Province Class AAA Trustworthy Enterprise, Jiangsu Famous
Trademark, etc.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Chen Zufu 5.96
Jiang Jianping 3.41
Liu Yaoxiang 3.41
Liu Zhenfeng 6.13
Yang Peixing 14.98
Zhangjiagang Bole Investment & Development Co., Ltd. 41.04
S Shares Issued In Singapore 25.07
Zhangjiagang Bole Investment & Development Co., Ltd.
============================================
Date of Registration: July 2, 2002
Registration No.: 320582000050260
Legal Form: Limited Liabilities
Company
Chief Executive: Yang Peiying
Registered Capital: CNY 60,852,500
Address: No.61 Zhenxing Road, Chenghang Street, Yangshe Town,
Zhangjiagang, Jiangsu Province
Tel: 86 0512-58292953
MANAGEMENT
Yang Peixing, Legal Representative, Chairman and General
Manager
---------------------------------------------------------------------------------------------------------
Gender: M
Age: 53
Qualification: University
Working experience (s):
From 1998 to present, working in SC as legal representative, chairman
and general manager
Also working in Zhangjiagang Junma Steel Cord Co., Ltd. as chairman, and
in Zhangjiagang Junma Fine Chemical Factory as principal
Liu Yaoxiang, Vice
Chairman
--------------------------------------------------
Gender: M
Age: 61
Qualification: University
Working experience (s):
At present, working in SC as vice chairman.
Director
-----------
Liu Zhenfeng
Jen Shek Voon
Teng Cheong Kwee
Zhou Zhidan
Shan Wenfeng
Supervisor
--------------
Yang Renming
Xu Feng
BUSINESS OPERATION
SC’s registered business scope includes manufacturing and selling cord
fabric, thread, wholesaling its products and similar products.
SC is mainly engaged in manufacturing and selling cord fabric and steel
yarn.
Brand: JUNMA
SC’s products mainly include: steel cord, gumming cord fabric.
SC sources its materials 100% from domestic market, mainly Jiangsu. SC sells 70% of its products in domestic market, and 30% to overseas market, mainly U.S.A., Europe and Southeast Asian market.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
*Major Customers:
==============
Redepesca S.A.S.
Industrial Fiber Sales International Inc
Novatec Braids Ltd.
Hamilton International LLC.
Madura Industrial Textiles Limited
*Major Supplier:
============
Zhangjiagang Junma Polyester Fibre Products Co., Ltd.
Staff &
Office:
--------------------------
SC is known to have approx. 1,900
staff at present.
SC owns an area as its operating office & factory of approx. 165,000
sq. meters at the heading address.
RELATED COMPANY
Zhangjiagang Junma Fine Chemical Factory
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’s suppliers declined to make any
comments.
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
CONSOLIDATED
BALANCE SHEET
31 December 31 December
2013 2012
CNY’000 CNY’000
Non-current assets
Property, plant and equipment 222,939 1,319,197
Lease prepayments 15,984 215,649
Deferred tax assets - -
----------------------------------------
238,923 1,534,846
----------------------------------------
Current assets
Inventory 275,854 550,133
Trade and other receivables 1,517,774 1,602,831
Pledged bank deposits 908,427 --
Cash and cash equivalents 748,594 760,400
-----------------------------------------
3,450,649 2,913,364
-----------------------------------------
Total assets
3,689,572 4,448,210
-----------------------------------------
Current liabilities
Trade and other payables 1,222,368 1,514,587
Interest-bearing bank loans 2,376,607 2,289,106
Derivative financial liabilities -- 196
Income tax payable -- --
-----------------------------------------
3,598,975
3,803,889 -----------------------------------------
Non-current liabilities
Borrowings -- 410,000
Deferred tax liabilities -- 6,054
-----------------------------------------
Total liabilities 3,598,975 4,219,943
-----------------------------------------
Net assets 90,597 228,267
========================
Equity attributable to owners of
the parent
Share capital and share premium
179,340 179,340
Other reserves 58,847 58,803
Retained earnings (147,590) (120,794)
-----------------------------------------
Equity attributable to owners of the Company 90,597 117,349
Non-controlling interests --
110,918
-------------------------------------------
Total equity 90,597 228,267 ==========================
CONSOLIDATED
INCOME STATEMENT
2013 2012
CNY’000 CNY’000
Revenue 2,513,762 3,052,820
Cost of sales (2,325,022) (2,939,591)
--------------------------------------------
Gross profit 188,740 113,229
--------------------------------------------
Other operating income 76,348 98,475
Distribution expenses (81,785) (112,470)
Administrative expenses (53,989) (120,101)
Other operating expenses (15,756) (39,322)
Finance costs (115,594) (185,918) --------------------------------------------
Profit / (loss) from ordinary (2,036) (246,107)
activities before taxation
Income tax expense (24)
1,677
--------------------------------------------
(Loss)/Profit for the year (2,060) (244,430)
--------------------------------------------
Other
comprehensive income
Currency translation differences
arising on consolidation 44 (5)
Total
comprehensive loss for the year (108,434) (244,435)
--------------------------------------------
Attributable to:
Equity holders of the Company (26,796) (159,544)
Non-controlling interests (81,682) (84,886)
-------------------------------------------
Important Ratios
=============
|
|
As of Dec. 31,
2013 |
As of Dec. 31,
2012 |
|
*Current ratio |
0.96 |
0.77 |
|
*Quick ratio |
0.88 |
0.62 |
|
*Liabilities to assets |
0.98 |
0.95 |
|
*Net profit margin (%) |
-4.32 |
-8.01 |
|
*Return on total assets (%) |
-2.94 |
-5.50 |
|
*Inventory / Revenue ×365 |
41 days |
66 days |
|
*Revenue / Total assets |
0.68 |
0.69 |
|
*Cost of sales / Revenue |
0.92 |
0.96 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIR
The revenue of SC appears fairly good in both years.
SC’s net profit margin is fair in both years.
SC’s return on total assets is fair in both years.
SC’s cost of sales is high, comparing with its revenue.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a fair level in both years.
SC’s quick ratio is maintained in a fair level in both years.
The inventory of SC appears average.
SC’s revenue is in a fair level in both years, comparing with the size
of its total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is high.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fair.
CONCLUSIONS
SC is considered large-sized in its line with fair financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.57 |
|
|
1 |
Rs.100.30 |
|
Euro |
1 |
Rs.72.37 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
TPT |
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.